Amazon Adds $2.25 Million to Campaign Opposing California Tax

Amazon.com Inc. (AMZN) has added $2.25 million to an effort to void a California law requiring online retailers to collect sales taxes on purchases by state residents, a campaign-finance filing shows.

Amazon, the world’s biggest Internet retailer, started the More Jobs Not Taxes campaign committee with a $3 million contribution in July. The Seattle-based company donated the additional amount on Aug. 10, according to the Aug. 19 filing. The company is the only reported donor to the committee.

The committee is gathering signatures to authorize a June 2012 referendum on overturning the law, which was signed June 29. The campaign needs almost 505,000 signatures from California voters by Sept. 27 to qualify for the ballot.

Retailers including Wal-Mart Stores Inc. (WMT), the world’s largest, oppose the Amazon-led repeal effort. There is no record of any contributions to an anti-repeal campaign, according to the secretary of state’s website.

Ned Wigglesworth, a spokesman for More Jobs Not Taxes, declined to comment on how the committee plans to spend its money. It hasn’t filed expenditure reports, according to the secretary of state’s website.

A 1992 U.S. Supreme Court ruling allows states to require retailers to collect sales taxes only if they have a physical presence in the state. After the California law passed, Amazon severed ties with about 10,000 California-based website operators that sell products through Amazon.

To contact the reporter on this story: James Nash in Sacramento at jnash24@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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