May 04, 2001 California E-Fairness Bill Moves Ahead in State Assembly Independent booksellers in California were cheered when the state Assembly Appropriations Committee approved an e-fairness bill on May 2. The proposed legislation--AB 81, sponsored by Assemblywomen Carole Migden (D-San Francisco) and Dion Aroner (D-Berkeley)--would require the California Board of Equalization to enforce existing law and ensure that wholly or partially owned online subsidiaries of California retailers collect sales tax on retail sales to California consumers. A similar bill was passed by the state legislature in 2000 only to be vetoed by Governor Gray Davis last September. AB 81 had already been approved unanimously by the Assembly's Revenue & Taxation Committee last month. Northern California Independent Booksellers Association (NCIBA) Executive Director Hut Landon told BTW that NCIBA members were heartened by the bill's progress. "So far, people are not arguing against it this year, as was the case in some instances last year. The reception this year has been much better. I think people understand the issue-that this is not a case of new taxes, but rather a clarification of what the law calls for." When the bill passed the Revenue & Taxation Committee, Migden noted that "this fair, non-discriminatory bill treats online sales the same way as mail order and phone sales or any other firm doing business in California. Fairness to the entire business community demands that the state enforce current law even-handedly so that all retailers-particularly large, corporate chains-all share the same responsibility to collect the tax on the goods they sell." Following last week's Appropriations Committee approval, a vote in the full state Assembly could come within two weeks. Looking ahead, Landon said, "I would really encourage all California booksellers to contact their assemblyperson and to ask for their support of AB 81. Even though we're pleased with the response to the bill so far compared to last year, we do not want to get complacent and have legislators think that booksellers do not care about this issue." Landon added that he knew many booksellers were noting especially to legislators that "this bill is a clarification of existing law and the closing of a loophole in the tax code-not a new tax." Booksellers can find contact information for their assemblypeople at http://www.leginfo.ca.gov/. On the national scene, on May 1 the Senate Commerce Committee postponed a vote on an Internet taxation bill after negotiations failed to reconcile competing bills. Topics: Internet Commerce, News - Regional, Sales Tax Initiative,