Friday, August 19, 2011

Bay Area Businesses Demand “E-Fairness”

Bay Area business owners and California Teachers Association representatives gathered at Palo Alto Bikes Wednesday to denounce Amazon.com for circumventing California sales tax laws.

“We can’t allow the scofflaws like Amazon to say they’re not going to pay taxes,” said Don Dawson, California Teachers Association Board member who represents educators in Santa Clara County.

“Their failure to follow the law will help contribute to wide-scale cutbacks to essential school programs, making it difficult for educators to do their job and educate our children,” Dawson added.

Local retailers say Amazon possesses an unfair advantage over brick and mortar stores who have to pay tax to the state of California for each transaction conducted. Those taxes along with others are given to the state, which redistributes them to public schools, Dawson said.

The schools in the Redwood City School District rely primarily on money from the state because property taxes don’t generate enough to meet the state’s minimum funding.

Mike Jacoubowsky, owner of Chain Reaction Bicycles in Redwood City, said he is aware that all the stores on the Peninsula are competing against each other as well as online retailers.

"We just want to compete on an even playing field,”

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