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Amazon cites a law that says companies only have to collect taxes if they have a physical presence in a state. Illinois became the latest state to pass a law that forces Amazon to collect sales tax if it has marketing affiliates in the state. Amazon plans to drop its Illinois affiliates so it can avoid collecting taxes.
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Full story at http://www.npr.org/2011/03/17/134615057/Business-News?ft=1&f=1006
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