MAINSTREET FAIRNESS – ONLINE SALES TAX – WAYFAIR DECISION

Legislation clarifying the new rules-of-the-road for collection of online sales tax passed committee earlier this week.  Years ago, CBPA was one of the first to support legislation in California that forced online retailers to collect sales tax in the same manner that brick-and-mortar California businesses had to.

California Retailers Association are now taking the lead of a coalition that includes all of our commercial, retail, and industrial real estate groups and is working to clarify how to implement a recent federal decision that requires other states to follow our lead.  However, new conforming rules need to be adopted in our state to conform to the decision.

Senator Mike McGuire, Chair of the Senate Committee on Governance and Finance, Assemblywoman Autumn Burke, Chair of the Assembly Committee on Revenue and Taxation and California Treasurer Fiona Ma are partnering on AB 147 – which implements the South Dakota v. Wayfair, Inc.

AB 147 allows California to correct the competitive advantage out-of-state businesses, who did not collect tax, had over California retailers, who did. This inequity can give a big edge to online retailers over small businesses.

We will keep you posted as the bill moves forward.  Click here for more information.

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