California Governor Vetoes Sales Tax Bill.(Gray Davis)(Brief Article)

CALIFORNIA GOVERNOR Gray Davis has vetoed a bill requiring online retailers to collect sales taxes if they have bricks-and-mortar stores or warehouses in the state. Strongly supported by the Northern California Independent Booksellers Association and the American Booksellers Association, the bill would have required B&N.com and Borders.com, among others, to charge sales tax-and thereby erase a price advantage independents say is unfair.

Davis, a Democrat, took the action because he did not want to "stifle" e-commerce, Reuters said.

In an echo of federal inaction on the issue, the governor did, however, sign measures to create a commission to exam me Internet …