california sales tax

eBay said most of its sellers would be exempt from a new California law requiring out-of-state retailers to collect sales tax in the state if they deal with California businesses. (See, "How California Sales-Tax Collection Legislation Affects Small Sellers - link.)

eBay Vice President and Deputy General Counsel - Government Relations Tod Cohen released the following statement on Friday regarding the passage of the California budget and Internet sales tax bill:

"eBay believes that the legislative actions by the State of California aimed at forcing out-of-state retailers to collect and remit California state sales taxes violate the US Supreme Court's Quill decision governing sales tax collection. SACRAMENTO, Calif.—Republican lawmakers are claiming victory after the state budget passed last week without a single GOP vote because the plan did not include the Democrats' top solution—a renewal of the higher income, sales and vehicle taxes approved two years ago.

But not every conservative is popping a bottle of California sparkling wine in celebration: While they held fast to their no-tax pledge, GOP lawmakers also lost a historic chance to secure their top priorities: scaling back state employee pensions; imposing a state spending cap; and making business-friendly changes to California's regulatory and environmental laws.

Republicans hope to pin the blame for massive spending cuts to social programs and higher education on Democrats, while claiming credit for holding the line on taxes. The majority vote budget came after Gov. Jerry Brown, a Democrat, conceded defeat in his attempt to persuade a handful of Republican lawmakers to support his plan to ask

voters to extend for up to five years temporary increases in the sales, income and vehicle taxes.

Union leaders and Democrats hope that as the deep spending cuts take effect, Californians will feel the impact and public opinion will shift toward supporting tax increases they hope to put on the ballot in November 2012. Those could include higher taxes on the wealthy and taxes on companies that pump oil in California, but there are no specific proposals yet.

Republicans could be saved by a rebounding economy. "The Republicans appeared to not want to support any reasonable package. "The Republicans are calling it a victory because they believe that not extending the taxes, the higher tax rates, was good for the average Californian," said Toebben, a Republican. Thad Kousser, an assistant professor of political science at the University of California, San Diego, said the GOP successfully leveraged its only remaining legislative power by letting temporary tax increases expire on July 1.

Mitch Zak, a Republican political consultant who supported GOP lawmakers meeting with the governor, said Republicans should have laid out specific policy proposals on pensions, state regulations and a spending cap soon after Brown released his initial budget proposal in January.

Fox was among Republicans who had urged GOP negotiations over the governor's tax proposal.