State Focuses on Taxing Online Sales Post-Wayfair
Oct. 18, 2018
The Legislature and California Department of Tax and Fee Administration (CDTFA) are ramping up efforts to collect sales and use tax from out-of-state online retailers, following the U.S. Supreme Court’s decision in Wayfair v. South Dakota. The Legislature recently held an informational hearing examining the state’s authority under the Wayfair decision and CDTFA is hosting a stakeholder meeting (which counties are invited to attend) to collect feedback as they prepare to issue guidance materials.
The informational hearing, jointly hosted by the Assembly Revenue and Taxation Committee and the Senate Governance and Finance Committee, offered an overview of the Wayfair decision and how it might impact California tax collection. The decision, issued in June 2018, allows states to tax online sales, even if the retailer does not have a physical presence in the taxing state. CDTFA Director Nicolas Maduros presented at the hearing and engaged in a robust question and answer period with state legislators that focused on next steps and potential transaction thresholds. Click here for the video recording.
CDTFA is continuing the conversation with stakeholders in a meeting on Tuesday, October 23, 10:00am at their headquarters (450 N Street, Sacramento). All counties are invited to attend in-person or watch via webcast (available at www.CDTFA.CA.GOV).
Please contact Dorothy Johnson, CSAC Legislative Representative, or Tracy Sullivan, CSAC Legislative Analyst, for more information.