Amazon Tax Bill Passes State Assembly

The state of California could collect more than $1 billion a year by taxing Amazon and other online retailers if a bill approved by the Assembly becomes law.

Assemblyman Charles Calderon, a Democrat from Whittier, says his legislation doesn't impose a new sales tax, but extends one that California should already have been enforcing.

AB155 passed, 47-16, with the support of one GOP lawmaker Tuesday. It now heads to the Senate.

Other Republicans rejected the bill because they said it would invite lawsuits, drive business out of California, and get the state entangled in the messy task of regulating the Internet.

The measure extends the sales tax to online companies that have a presence in the state, including those that work with sister companies with offices in California.