Online retailer Amazon.com has filed papers to try to get a referendum in the June 2012 California election in an effort to overturn a new online tax-collection law.

A bill passed by Democratic lawmakers and signed by Gov. Jerry Brown as part of the adopted budget requires major online retailers to collect sales taxes.

Democrats believe the proposal would raise $200 million the first year, according to the Sacramento Bee newspaper.

Once the law passed, Amazon cut off its thousands of affiliates to avoid collecting taxes.

If the referendum reaches the ballot, the newspaper said it is expected to create a heated ballot fight that will include major retailers, including Wal-Mart, and labor groups.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.