Amazon now collecting sales tax in California

Amazon logo seen at the introduction of the new Amazon Kindle Fire HD and Kindle Paperwhite personal devices, in Santa Monica, Calif., Thursday, Sept. 6, 2012. (AP Photo/Reed Saxon)
September 15, 2012 3:47:07 PM PDT
One of the biggest attractions about internet shopping is no more. Your online purchases will now include sales tax.

The so-called Amazon tax law took effect in California on Saturday. That means online retailers must now charge between 7 and 9 percent for state and local taxes. State officials say the new law will bring in as much as $100 million from Amazon purchases alone. And more than $300 million overall in the first year.

The board of equalization hired 35 new auditors and collectors to handle the windfall.


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