In The News

Wayfair Implementation Bill Clears First Committee With Unanimous Vote

By Dakessian Law | March 1, 2019

CalTaxletter (March 1, 2019):  Legislation to make changes to the California Department and Fee Administration’s implementation of South Dakota v. Wayfair, the U.S. Supreme Court decision relating to sales and use tax on transactions involving out-of-state sellers, was approved February 25 by the Assembly Revenue and Taxation Committee. The bill, AB 147 (Burke), received unanimous, bipartisan support.

The legislation would define “doing business in California” for the purposes of collecting sales and use taxes as having $500,000 in cumulative sales or deliveries into California in the preceding 12 months. The bill also changes the definition of “retailers” to include marketplaces that list or advertise tangible personal property for sale by third-party sellers.

Marty Dakessian, of Dakessian Law Ltd., testified that the bill doesn’t go far enough. He said he represents small businesses that sell through marketplaces that have received threatening notices from the CDTFA for retroactive collection.

 

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