Internet tax in California will immediately hurt Barnes & Noble.com. The reason is that they have real "brick and mortar" stores in California, thus they will be required by the new law to tax sales via the internet as well. It is important to note in this that companies without a physical presence in California will be exempt from the tax (i.e. Amazon will not have to collect the sales tax from California customers).....So, what does this mean? It basically gives AMZN a huge advantage over Barnes&Noble.com in California. They will always be able to sell cheaper (as they do not have to charge + collect the state sales tax from customers). Short term this translates into "Sell Barnes&Noble.com" + "Buy Amazon.com."