“California taxes out of state businesses who do business in the state.”
Do they expect *every* Mom-and-Pop internet business to pay them sales tax?
"The new law affects out-of-state corporations and pass-through entities (partnerships, S corporations, LLCs treated as partnership) and their partners/shareholders/members that have property, payroll or sales in this state. Currently, they may not be considered to be doing business in this state, but may be considered doing business starting in tax year 2011 if they meet any of the thresholds listed above." I guess this could apply to a mom and pop internet business if they incorporated as an LLC. Here's a link to the California Law.
https://www.ftb.ca.gov/businesses/New_Rules_for_Doing_Business_in_California.shtml