An appellate court ruling against Borders Group Inc. sets a precedent that could enable California to force some major Internet retailers to start paying state sales tax for books, music and other goods sold online to state residents.
Whether California tax collectors use the precedent to go after not only Borders but Barnes & Noble Inc., Amazon.com Inc. and other online retailers remains to be seen. But independent booksellers and other brick-and-mortar retailers have been cheering, saying the ruling should remove their Internet competition's unfair advantage.
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