The Sacramento Bee reported today that California’s Democratic lawmakers and Republican Governor Arnold Schwarzenegger are working on putting in a version of the so-called “Amazon tax” into a large new California tax bill.  New York has a similar law in effect today.

Amazon.com Inc. began collecting sales tax in New York in June 2008.  Last month, data from research firm comScore showed that online sales in New York have already seen a 4% higher year over year decline than in other states in the first half of this year.  Some analysts suggest that the decline may further increase in New York as the idea of online sales tax becomes better understood and accepted by state residents.

States around the country have become increasingly aggressive about collecting taxes and are looking to online sales to boost their falling revenues.  But Amazon.com Inc. and Overstock Inc. have fought back with lawsuits, though with little success.  In the case of Amazon, with distribution and customer service centers in ten states as well as in-state-hosted affiliate websites in several more states, their case against the demands of state tax collectors are more difficult than a smaller online retailer.

Schwarzenegger had recently vetoed an “Amazon tax” bill put forward by Assemblywoman Nancy Skinner, a Democrat.  The new “Amazon tax” would be buried as a part of an extensive tax overhaul and will take up to five years to go into full effect.  Or so they say.