California Enacts New Law for Remote Sellers and Marketplace Facilitators

May 2019

Summary

California has enacted a new law creating an economic nexus threshold for remote sellers and marketplace facilitators, requiring sellers that exceed $500,000 of sales in California to collect a sales tax.  The new threshold is effective April 1, 2019.  The prior threshold, which administratively imposed a threshold of $100,000 or 200 transactions, is now superseded by this legislation.
 
Go to BDO’s Wayfair landing page for an analysis on the Wayfair decision, along with a detailed state-by-state analysis on each state’s economic nexus threshold.

 

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