FACED WITH A PROJECTED BUDGET DEFICIT, California officials have been sending letters to businesses that might not have paid use taxes on out of state purchases over the past three years. In California, 44 other states, and the District of Columbia, businesses and individuals making purchases across state lines are supposed to pay use taxes, if the seller does not collect sales tax. Some small-business owners in California say the letters they have received are intended to intimidate and frighten them. 

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