Amazon reaches compromise with California legislatures (credit Amazon)

In the hard fought battle between the online retail giant and several states, it seems an agreement has been made at least temporary. With an estimated $200 million of revenue at stake the California state legislature and Amazon have agreed to delay the collection of taxes until Sept. 15, 2012. 

Earlier this year, politicians passed a measure (California Assembly has approved AB 155) dubbed the "Amazon Tax" that would collect taxes from online retailers with a physical presence in California-- this including subsidiaries. 

Amazon fought the new measure citing local businesses who use their services would be harmed as a result of the new taxes. The implication was if Amazon was forced to pay state taxes, they would remove ties to the Californian retailers who use their services. 

With the new compromise, however, some experts says Amazon may have opened the door for other states to follow. 

From the New York Times: 

The deal with California might embolden other states, said Robert W. Wood, a tax lawyer here. “Other states needing money will look and say, ‘It wasn’t a smooth process, but California is going to come out ahead,’ ” Mr. Wood said.

Amazon, in commenting on the matter, said it will continue to look for a solution on a federal level. 

From the Los Angeles Times: 

The legislation "will allow us to continue to work with Congress and the states to obtain a federal resolution to the sales tax issue as soon as possible," Paul Misener, Amazon vice president for global public policy, said in a statement.

The decision now remains with Governor Jerry Brown in California. If Brown supports the compromise bill it will go into effect immediately. 

Reach Jacob Chung here.