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Borders Suit Could Affect All Online Biz

17 Jun, 2005 By: Jessica Wolf

A California state appeals court has turned down a claim from Borders Inc., upholding that the company is responsible for paying California sales tax on online transactions completed in the state, even though the retailer is headquartered in Michigan, according to reports.

The decision sets a precedent that could potentially require other online retailers such as Amazon.com and BarnesandNoble.com to pay sales tax for items sold to California residents.

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