In a decision that could have a significant impact on online book retailing, a California Appeals Court has ruled that Borders “may be forced to pay tax on its online sales for the 2000 and 2001 period” because it has actual, “brick and mortar” stores in the state that are subject to the state’s tax laws. As Jim Milliot explains in a Publishers Weekly report, “the court found that because Borders conducts cross-promotions between its stores and online site and permits customers to return items to its stores which were bought online, the company had established enough of a presence.” Now, Milliot observes, it becomes “a likelier possibility that other hybrid retailers would be forced to change its policy, as well as that other states might follow California with attempts to enforce sales tax laws of its own.” The Borders case got underway when the company sought “a refund for back taxes it paid in 1998 and 1999 on its online sales.”