California Okays Online Sales Tax

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California legislators approved collection of an online sales tax among their revenue efforts as they passed the state budget on Wednesday.

Sponsors estimate the tax could bring in $200 million a year by collecting taxes that consumers have been avoiding when they make online purchases.

Federal law says states can only tax companies with a physical presence in a state, but the new California law applies that to include companies such as Amazon.com Inc. of Seattle, that have “affiliates” in a state.