SACRAMENTO — Governor Gavin Newsom has signed a law requiring companies like Amazon and eBay to collect sales taxes on behalf of some out-of-state sellers.

The law comes after the U.S. Supreme Court ruled last year states can collect sales taxes from companies even if the company is based outside of the state’s borders.

After the ruling, existing state law required sellers with at least $100,000 of sales in California to register as a retailer and collect taxes. The law Gov. Gavin Newsom signed on Thursday requires companies like Amazon and eBay to collect the taxes on behalf of those retailers, but only if they have at least $500,000 of annual sales in California.

State officials predict the law will generate an extra $759 million in state and local taxes by 2021.

One Response

  1. Monadnock Man

    After 45 years of living in this state that will tax when you back up, you would think they have exhausted all forms of confiscatory taxation, fees, regulation fees, etc…However, it appears not, and once again, the remaining few taxpayers have zero input! Does that mean we are now a dictatorship??? Just saying…..

    Reply

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