The e-tailer has upped the ante in its tussle with the state of California by offering to create 7,000 full-time jobs in the state by 2015 in exchange for a temporary reprieve from the state's Internet sales tax until 2014. The company proposed creating jobs by investing in six distribution and fulfillment centers in the state.
For the most part, lawmakers are skeptical. Legislators estimate new tax revenue of $200 million per year that they're not ready to give up so easily. Amazon has already spent around $5.25 million fighting the law. The California Retailers Association, which represents local brick-and-mortar merchants, contends that California has lost 18,000 jobs and $7.1 billion in economic activity in 2010 because of Amazon.
The new law also affects other online retailers like Overstock.com
I wholeheartedly agree with fellow Fool Cindy Johnson in that Amazon's competitive advantage over traditional retailers like Best Buy
Amazon may feel differently, though, because it's dumping millions of dollars into fighting state governments. For all of you Amazon shoppers out there that save on taxes: Do the taxes make or break your shopping decisions? Share your thoughts in the comments box below.
Fool contributor Evan Niu owns shares of Amazon.com, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Best Buy. Motley Fool newsletter services have recommended buying shares of Best Buy and Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.