Some California cities are calling on the state to return to a more equitable method of sharing tax revenue generated by Amazon's online sales — warning that a change made earlier this year creates an unfair system of "winners and losers" in the disbursement of millions of dollars used for critical public services.

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Amazon surpassed 153,000 full- and part-time employees in California in the fourth quarter of 2020, rapidly outpacing the more than 80,000 Amazon employees in the company's home state of Washington, the latest numbers from the company show.

Driving the trend: While Amazon has tech, engineering and product development operations in Silicon Valley and Los Angeles, the surge coincides with the build-out of its distribution network, Prime Now Hubs, Amazon Pantry and Fresh facilities, and physical retail stores. California is also one of the first states where Amazon is opening last-mile delivery stations in rural areas.

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