Amazon sales tax distribution is unequal! California calls on the government to distribute it fairly!

It is learned that some cities in California are calling on the government to fairly distribute Amazon's online sales tax.

It is reported that Amazon's sales tax is generally paid to local governments based on the customer's payment location. But starting earlier this year, the tax will be paid to the municipal government where the shipment is located (where Amazon's operation center is located). This means that the tax revenue will be transferred from the entire state to a few cities and counties with Amazon's distribution centers.

California cities have always relied heavily on sales tax as a source of revenue. California has imposed a 1% local sales tax since the 1950s. California is the state where Amazon has invested the most in the United States. As of the end of 2020, Amazon had 60 fulfillment and sorting centers, 50 delivery stations and 153,000 employees in the state. This change will cause a loss of sales tax revenue for most cities in California.

Amazon said they were simply following the taxation guidelines of the California Department of Tax and Fee Administration (CDTFA) and that they were committed to investing and helping the local economy grow.

Meanwhile, the city of Cucamonga, California, has presented a proposal to city officials across the state to "fairly and equitably distribute" Amazon's 1% sales tax, a proposal that has received preliminary support from a majority of cities and their leaders.

The proposal will be considered for final consideration at the annual meeting of California cities, which takes place Sept. 22-24.

Editor✎ Irene/

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