Resolution to Support Tax Collection by Online Retailers

Resolution Number 11-07.28

Whereas, The California Democratic Party on May 1, 2011, voted to support adoption of a state law that would support leveling the playing field between traditional brick and mortar retailers and internet-based retailers by adopting a state law standard of nexus which evaluates the physical presence attributed to a retainer in this state through facilities, personnel, related corporations, marketing affiliates, technological infrastructure, or any combination of these attributes and in fact, California recently passed such a bill, ABX 28, to boost tax collection by requiring on-line retailers to collect sales taxes owed for online sales to California residents and Governor Brown signed the bill into law, and 

Whereas, Amazon, the largest on-line retailer who in fact has a nexus presence in California is refusing to collect this tax which would potentially bring in hundreds of millions of dollars essential for funding schools, infrastructure and programs for the poor and disabled, etc. and also has launched an effort to overturn this law via referendum, and

Whereas,  Some on-line retailers like Amazon engage in a predatory business model of offering reduced prices by not collecting sales tax, depriving states of this needed revenue and putting California merchants who do collect sales tax at a severe competitive disadvantage resulting in a loss of revenue, employment opportunities and property tax for California, 

Therefore be it resolved, That the California Democratic Party reaffirms its support of efforts to level the playing field between brick and mortar retailers and on-line retailers and the law that passed and was signed into law by Governor Brown to compel Amazon and other online retailers doing business in California to collect the state's sales tax, and continues to supports those businesses that help our state thrive by collecting sales tax, as Californians should support and give business to those companies that support our State, and

Therefore be it further resolved, That the California Democratic Party commends the Governor and State Legislature for passing ABX 28, opposes Amazon's effort to repeal the law for Amazon's financial gain ad urges members of the California Democratic Party not to sign any petition or signature form to repeal the law.

Submitted by  Carole Lutness, 38th AD, LACDP/CDP E-Board; Pamela Gross; Chairman John Burton


Adopted by the California Democratic Party
At its July 2011 Executive Board Meeting
Sheraton Park Hotel, Anaheim
July 31, 2011





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