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Colorado lawmakers staring down an historic recession budget deficit last year passed legislation requiring Amazon.com to finally begin collecting sales taxes in the state. It didn't go so well. Amazon is still doing business here tax free. A similar battle is waging now in California, only on a greater scale, drawing the eyes of politics and business watchers in Colorado and around the nation. The California case likely won't go as well for Amazon as the Colorado case did. Amazon does huge online business in California and it also has a physical presence in the state, for example in the Silicon Valley warehouse where it develops its Kindle readers. Indeed, the tide seems generally to be turning against the online retailer, which has grown massive over the past two decades, spreading its roots in the fertile ground of a tax-free internet fairyland.
Borders Group will close six book stores and layoff 158 employees in Colorado this month. The news comes in the wake of a court order preventing online bookselling juggernaut Amazon.com from paying any sales tax in the state and a month after Amazon reported raking in eye-popping record profits.