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California Okays Online Sales Tax

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.