Just in case someone thinks that Amazon just doesn't like to collect sales tax at all, any marketplace transaction that Amazon completes on behalf of a California retailer to a California customer automatically collects California state sales tax and remits it quarterly to the state of California.
Amazon's rejection, however, is reinterpreting an advertising presence as being a physical presence. Note: One of the big pushers behind this is Buy.com which, being based in California, is fighting an uphill battle to stay competitive in California, as their prices are 10% higher than Amazon's at the final checkout because of the sales tax charges.
To put it into perspective, it is like California stating that any out of state company that uses a billboard advertisement is now based in California and subject to corporate taxes. It bends reality.
Kalifornia also collects income tax from a part of millions of retired military - if you were ever stationed in Kalifornia, they deem that you earned some of that retirement there and, no matter where you reside when you collect it, they want their share.
It does that, but non-reality is a reality in Obamaland. The airwaves are next. Anyone who advertises on the radio or TV will be deemed to have a "physical presence" because the government "owns" the air. The illusion has become reality, thanks to the 'Rats.