04/18/2024

California moves to raise sales tax collections from out-of-state retailers

Shoppers looking for a bargain by skipping California sales tax will soon close a loophole that let them buy goods from out-of-state online retailers without immediately paying local taxes.

That deal ends on April 1 for thousands of out-of-state online retailers that will be required to collect California sales tax for the first time, according to a regulation the California Department of Tax and Fee Administration released on Tuesday.

The new rule applies to businesses that generate more than $100,000 in annual sales from Californians, or from companies that conduct 200 or more transactions in California.

As many as 27,000 companies might be required to register with the state and begin collecting tax, department spokeswoman Stacie Spector said.

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