By Hannah Wiley, Sacramento Bee | Pump the sales tax brakes.
Out-of-state online retailers who make more than 200 transactions or $100,000 in California sales have four days before they must begin collecting and remitting state sales tax from shoppers.
But California lawmakers are fast-tracking a bill that would make critical amendments to the new regulation under the California Department of Tax and Fee Administration, which is requiring non-California businesses to register with the state and start collecting state sales tax.
Assemblywoman Autumn Burke, D-Marina del Rey, and state Sen. Mike McGuire, D-Healdsburg, are spearheading Assembly Bill 147, [supported by Assemblywoman Sharon Quirk-Silva] which raises the sales threshold for mandatory tax collection to $500,000 so that small retailers don’t have to collect taxes on nominal sales they make in California.
“A higher threshold will make the implementation easier and capture the vast majority of tax revenue generated by online retailers here in the state,” McGuire said. “This is a well thought out and comprehensive approach. This bill strikes a balance between all the stakeholders. California retailers, online platforms, out-of-state businesses and many others.”
The proposal would then require third-party sellers on sites like eBay, Amazon and Etsy, to collect and pay the taxes on behalf of its sellers beginning Oct. 1, 2019 “because collecting tax from a few larger marketplaces is easier than from several thousand sellers,” according to the bill analysis.
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