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Amazon to begin collecting sales tax in Calif.

November 3, 2011 12:00:00 AM PDT
The battle over California's new online sales tax continues. On one side, Amazon.com is hoping to overturn the tax. On the other side are small businesses and their supporters. There were calls Thursday in Sacramento for Amazon to back down.

Amazon says it's a voluntary program.

The company calculates and collects any local and state sales taxes for its third-party vendors.

The money will then be given to the seller, who remains responsible for paying the tax.

Amazon will charge merchants a fee for the service.

That fee will be equal to 2.9 percent of the taxes collected.