Borders Online v. State Board of Equalization

Citation
Borders Online, LLC v. State Board of Equalization, 129 Cal.App.4th 1179, 29 Cal.Rptr.3d 176 (2005) (full-text).

Factual Background
Borders, an out–of–state Internet retailer sued the Califonia Board of Equalization for a refund of use taxes.

Appellate Court Proceedings
The court upheld the Board's determination that Borders must collect use taxes on online purchases by California residents. The key finding was that because products purchased online could be returned for exchange or refund at Borders stores, and because Borders stores and Borders online engaged in cross-marketing efforts, Borders represented its online arm "for the purpose of selling" goods in the state and that therefore the online site was required to collect and remit the use tax from its California customers.