California: Out-of-State Internet and Catalogue Retailers Stay Tuned!
As mentioned back in April, California proposed some burdensome notification requirements on out-of-state retailers without nexus in California.
The California Assembly just passed the bill, and it is continuing through the legislative process. With that said, some of the original components were deleted, such as the rebuttable presumption, and burdensome quarterly reporting. See previous post for details.
The item that is left in the bill is a less burdensome notification requirement:This bill would require each retailer that is not required to collect use tax to provide notification on its retail Internet Web site or catalogue that tax is imposed on the storage, use, or other consumption in this state of the tangible personal property purchased from the retailer that is not exempt, and is required to be paid by the purchaser, as provided.
Go to AB 2078 to review the actual bill.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.