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On June
28, 2011, California Governor Jerry Brown signed
ABx1 28, the Golden
State’s Amazon Tax. The law stipulated that out-of-state
Internet businesses with in-state affiliates have to collect
sales taxes immediately from California residents who buy
their products. In response to this law Amazon threatened
to stop doing businesses with any affiliates residing in the
state of California in order to avoid having to pay the tax.
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