Amazon Chickens out

Amazon has cut a deal with top legislative leaders to avoid a ballot battle over the state's insistence that the online retailer collect state sales tax on purchases by Californians.

Amazon would delay collecting taxes until September 2012, according to multiple sources directly involved in the matter. A new state law mandated that it gather the fees starting this past July. Instead, Amazon has poured $5 million into collecting signatures for a referendum challenging the law. LA Times

The Amazon business model is really the UPS business model. California is forcing Amazon to collect UPS delivery taxes.