By RACHEL METZ
AP Technology Writer

SAN FRANCISCO — Amazon.com Inc. wants California voters to decide whether to overturn a new law that forces online retailers to collect sales taxes there, setting the stage for a potentially high-dollar ballot fight next year that would pit business against business.

A petition for a referendum was filed July 8 with the state Attorney General's Office so voters can decide on the requirement, which was included in a state budget signed into law in late June.

The new law forces online retailers to collect California sales taxes by expanding the definition of having a physical presence in the state. The requirement now kicks in if an online retailer has a related company, such as a marketing or product-development arm, or affiliates in the state - individuals and companies that earn commissions by referring visitors to Amazon from their websites.

Passage of the law, which is projected to help the state collect an additional $200 million annually, adds California to a growing list of states that have turned to such measures in hopes of bringing in more tax revenue.

Billions of dollars are at stake as a growing number of states look for ways to generate more revenue without violating a 1992 U.S. Supreme Court ruling that prohibits them from forcing businesses to collect sales taxes unless the business has a physical presence in that state, such as a store. When consumers order from out-of-state retailers, they're supposed to pay the tax that is due, but they rarely do and it's difficult to enforce.

States are trying to get around the Supreme Court restriction by passing laws that broaden the definition of a physical presence. Online retailers, meanwhile, are resisting being deputized as tax collectors.

Efforts to force online retailers to collect sales tax are supported by traditional retailers and their lobbying arms in Washington, D.C., and Sacramento.

They say online companies such as Amazon have an unfair advantage and can lure customers who seek to escape paying state and local sales taxes.

That led to an estimated $4.1 billion in lost sales in California in 2010, the California Retailers Association said Monday in a statement responding to Amazon's planned ballot initiative.

According to the Performance Marketing Association, there are 200,000 affiliates across the country, 25,000 of which are located in California.

Amazon also dropped affiliates in Arkansas, Connecticut and Illinois after similar sales-tax collection laws were passed there.

Overstock, which is based in Salt Lake City, also has shuttered its affiliate programs in several states due to the laws.