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Watch for the wave: Amazon to pay sales tax in California

Struggling with an ongoing recession-era budget crisis that has seen hundreds of millions of dollars slashed from public education alone, Colorado lawmakers tried and failed to get mega-online retailer Amazon to pay state sales taxes last year. Amazon successfully dodged similar efforts in other states, but the tax man came calling in cash-strapped California last spring and, after dumping $5 million on a ballot initiative to oppose the new online tax law, Amazon announced on Wednesday it had made a deal with state lawmakers. It will charge sales tax in the Golden State next year. That gives Amazon and other online retailers just months to press federal lawmakers to pass a national law that thins their obligations in the states.