The battle between Amazon and California lawmakers regarding the online retailer's refusal to collect sales tax has been settled for the moment with a temporary compromise. According to the
LA Times, a deal was struck late Wednesday that will allow the retailer to continue offering tax free transactions in California until September 2012. In turn, Amazon agreed to halt their lobbying efforts against a new state law on sales tax set to start in July.
Speaking at a press conference, Assemblyman Charles Calderon (D-Whittier) stated, "It's a safe harbor for up to a year... If they can't get Congress to act by next July, then they will start to collect the tax in September 2012. If by chance they get Congress to act, then that would trump the state law."
So barring a decision from Congress, it looks as if online shoppers living in California have only one year left of tax free purchases from Amazon. Expect this to be in the news again when Congress addresses the contentious issue next summer.