California Sets Online Tax Enforcement Date

December 17, 2018

The California Department of Finance Tax Administration (CDTFA) has decided to require remote sellers to collect sales tax beginning April 1, 2019. CDTFA has stated that they will set the thresholds at $100,000 or 200 transactions in prior (or current) calendar year. In addition, CDTFA will require remote sellers to pay district sales tax in any district where they meet the threshold. The state of California has approximately 290 districts and 234 separate geographic areas which in and out of state businesses will have to track their sales. Click here to download the CTDFA online tax enforcement FAQ.

As a California founded and headquartered business, eBay welcomes the opportunity to work with California Governor-elect Newsom and his staff, CDTFA, and the California State Legislature to create a comprehensive solution based on the principles of fairness, integrity, accountability, and flexibility. eBay commends the desire of leaders in the California State Legislature to provide for fair implementation of the Wayfair decision by not creating heavy burdens on small businesses and California consumers. We will continue to work with the state of California to push for a level playing field for Internet-enabled small business that provides accountability and integrity for the collection of sales through a simplified approach. Furthermore, we want to ensure that California consumers, businesses, local and state government have the opportunity to fashion a set of laws designed for an innovative economy which empowers all Californians and people that purchase form California small businesses.