Hancock’s Bill to Create Jobs

Senator Loni Hancock

On Friday, September 23rd, Governor Brown signed into law the internet sales tax bill.  Senator Loni Hancock joined the Governor at the signing ceremony at the headquarters of Gap, Inc. in San Francisco.
“This law will create new jobs for Californians and protect existing ones because the state’s brick-and-mortar businesses will no longer be at a competitive disadvantage to out of state internet retailers,” Senator Hancock stated.
“At a time when California is facing great fiscal stress, the $200 million per year that we expect from the new law will go a long way in helping us support public education,” Hancock added.
Among its provisions, the new statute contains three separate internet tax bills, including Senator Hancock’s bill giving the Board of Equalization broad authority to determine who is legally obligated to collect and remit California sales tax (the “long-arm” provision).
The two other internet sales tax bills merged into the new law were authored by Assembly Majority Leader Charles Calderon (D-Montebello) and Assembly Rules Committee Chair Nancy Skinner (D-Berkeley)
“This is a classic compromise that will greatly benefit the state,” Hancock stated.
“For the first time, Amazon acknowledges that it is obligated to collect and remit California sales tax and that it will begin doing so, without further challenge, in September 2012. Amazon has also agreed to forgo any further attempt at a referendum and will not pursue court challenges.  We now have a clear path to creating a level playing field where the state’s brick-and-mortar businesses will not be at an unfair disadvantage,” Hancock concluded.