SAN FRANCISCO — Joining several other states, California Gov. Jerry Brown on Wednesday signed legislation to require out-of-state Internet sales companies to collect and remit state sales taxes. The law takes immediate effect.
The bill expands the definition of a company having physical presence in the state to require collection, aside from having an actual store. Now companies with subsidiaries in California or business relationships that refer potential customers — even a Web site link on an unrelated site — are required to collect sales taxes.
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