The retail giant is among several that have no physical presence in the state. Legislative Democrats think a levy on them could bring in up to $150 million annually.State lawmakers hunting for revenue are eyeing one source that could prove costly to millions of California consumers: Amazon .com.The online retail giant has enjoyed an edge over many competitors in the state because it is not required to collect sales tax from residents who buy books, top-of-the-line plasma televisions, cases of diapers and thousands of other products from its website. The Seattle corporation has no store, warehouse, office building or other physical presence in California, and the state cannot tax such businesses under a 1992 Supreme Court decision.
http://www.latimes.com/news/local/la-me-amazon20-2010feb20,0,3686007.story