California tightens tax grip on online retailers

In a move that is certainly more incremental than some of the headlines touting its coming, California's senate has passed a new bill that forces online retailers who hire local contractors to perform maintenance and installation to collect and remit sales tax.

Although the headlines on this article refers to this as an "internet tax", it appears to be an extension to the already staunch policies of the state with regards to who is considered to be an "in state" company and thus required to comply with state and local tax laws.

More in-depth coverage is available from the San Jose Mercury News in this article.

The bill is yet to be signed by the governor and he has vetoed similar measures in the past.