Retail real estate landlords in California will have something to cheer about next week. Amazon.com will start charging residents sales tax on purchases in the state on Sept. 15.
Amazon isn't required to charge sales tax in states where it doesn't have a physical presence, such as an office building or warehouse. But the Internet retailer's expansion has prompted it to finally build warehouses in California, leading to this new measure.
It's a long time coming.
Even though other large national retailers have a significant online presence, they have not been on the same playing field with Amazon. Walmart, Target, Macy's and other major outfits, most of which have stores in nearly every state, must force their consumers to pay sales tax, while Amazon has clearly had an upper hand. ICSC has been pushing for parity on this issue for years.
One beleagured retailer that this could especially help is Best Buy. Some say that the electronics chain has simply become a showroom for Amazon, where customers go check out the products, find one they like, and then go home and buy it online.
We doubt there will be a major spike in sales at California shopping centers come Sept. 16, but having one less obstacle certainly won't hurt in these uncertain economic times.
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