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California has joined , New York, Colorado, North Carolina,
Rhode Island, Illinois, and Arkansas in establishing laws to
tax Internet sales made through Affiliates from online
retailers who do not have a presence in their state. The
total is now seven states that have such law. For example, amazon.com would have to collect state taxes from California
residents based on sales generated by it’s affiliates in
California even though it has no physical presence there.
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