Arizona law makers are working on a bill to try and collect sales tax on purchases made online. But one online company says it's illegal.
A bill unanimously endorsed by a senate committee would classify Amazon as an in-state retailer for tax purposes because it has distribution centers in Arizona.
However, Amazon says it doesn't have to collect sales tax because the parent company doesn't have a physical presence in the Grand Canyon state.
The Arizona retailers association supports the bill.
Lobbyists say thousands of jobs in Arizona stores are at stake.
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