Web electronics site Newegg has sent an e-mail to customers saying that it will not comply with a controversial New York State law requiring Internet retailers to collect sales tax for purchases by state residents.

"After careful review and consideration, we are pleased to inform you that we have stopped collecting New York sales, effective Aug. 21, 2008," wrote Newegg spokesman Bernard Luthi in the e-mail, according to PC Magazine. "This decision was driven by your direct and candid feedback and our continued commitment to you as our valued customers."

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