In an effort to create a balanced budget and some fiscal stability in California, Gov. Jerry Brown and the Democrats in the California Legislature finally passed a budget over continued Republican intransigence over the Democrats' desire to raise revenues rather than cut services like K-12 schools.
Democrats sidestepped Republicans by finding a means to generate revenue without raising taxes (in fact, sales-tax rates are down now) by closing a loophole in the law that had allowed Internet giants like Amazon.com and Overstock.com to avoid collecting sales taxes on their Internet sales. It is estimated that closing this loophole will add $317 million to the treasury.
Amazon has been avoiding collecting sales taxes since its inception in 1995. It has signaled that it will have no part of the new law and will likely fight it in the courts.