Yahoo! News reports that a coalition of nonprofit organizations is asking customers of Internet retailer Amazon.com (News - Alert) Inc. to boycott the company unless the online retail giant stops resisting California law that requires more online retailers to charge a state sales tax. As per the report, the  not for profit groups, along with several state lawmakers, have called on Amazon to “stop cheating California” by trying to repeal the law through a ballot referendum.

According to Yahoo! News, Amazon's opponents held a news conference outside the Capitol to announce a new website – ThinkBeforeYouClickCA.org – that is intended to organize opposition to Amazon and explain how customers can close their accounts.

Although, Amazon.com did not respond to an email and a call for comment, the lawmakers in June approved a measure to expand collection of California sales tax to more Internet retailers. Thus, estimating that it could bring in at least $200 million a year.

So far to repeal that law, Amazon has spent $3 million on the referendum, wrote Yahoo! News. The group backing the referendum includes taxpayer groups, Internet companies and small businesses.

As per the report, this nonprofit coalition combines groups that support increased funding for health and social services, which has been severely cut by the state in the last several budgets.  This group believes that by avoiding collection of the state sales and use tax, Amazon seems to gain a competitive advantage over other businesses in the state. Plus, it deprives the state of revenue that could be used to help seniors, working families and the disabled, wrote Yahoo! News.     

The news site quoted Jessica Lehman, representing Community Resources for Independent Living, as saying, “If Amazon.com won't contribute to California, then we won't contribute to Amazon.”

Yahoo! News identified other groups calling for the boycott, which included the California Alliance for Retired Americans, the Health and Human Services Network of California and Parent Voices.

However, in a company statement, Amazon said, “This law would hurt consumers at a time they can't afford to send more tax dollars to Sacramento, and kill jobs when we need them for our economic recovery.”

At least six states have approved laws to collect sales tax from online retailers and some more were looking into the prospect this year, wrote Yahoo! News.

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