Amazon, Overstock say they'll fight California sales tax

California's Internet sales tax became law Wednesday, prompting immediate push-back from two of the biggest online retailers. and said they would sever ties with thousands of California affiliates — businesses and nonprofits that earn commissions by referring customers to the two merchants.

By cutting those ties, Overstock said it will be able to wriggle out from under the new law. But Amazon, which has deeper roots in California, might still be covered by the tax.

The two have been threatening for months to eliminate their California affiliates if the sales-tax proposal became law.

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