Tax Law Updates | New Proposed Legislation
June 24, 2009
California State Assembly to Tax Sales of Out-of-State Internet Companies, But Amazon.com Threatens to Leave California
Assembly Bill 178
A.B. 178, 2/2/2009
California Assembly Bill 178 (“AB 178”) seeks to provide a level playing field to ensure that California businesses, both brick and mortar and e-commerce, do not face an unfair competitive disadvantage against out-of-state internet retailers.
California Assemblywoman Nancy Skinner (D–Berkeley) has introduced this legislation that will ensure that California receives its share of sales and use tax revenue from out of state companies to level the playing field for California’s brick and mortar businesses.
Specifically, AB 178 provides that out-of-state companies which maintain a network in California and thus have a presence in the state be required to collect sales tax…
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View a PDF of the proposed legislation