California Announces Use Tax Collection Requirements for Out-of-State Retailers

December 17, 2018 Daniel Kostrzewa

In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, California will soon require certain out-of-state retailers to collect and remit use tax on sales into California. Beginning April 1, 2019, out-of-state retailers are required to collect California state use tax if their sales into California exceed either $100,000 or 200 or more separate transactions during the current or preceding calendar year.

For more information on these new requirements, please click here.

Also beginning April 1, 2019, all retailers, whether located inside or outside of California, are responsible for collecting and remitting California district use tax if during the current or preceding calendar year the retailer’s sales into the district exceed $100,000 or the retailer made sales into the district in 200 or more separate transactions.

For more information on the new requirements to collect district use tax, please click here.

About the Author

Daniel Kostrzewa is a Junior Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Daniel focuses on domestic sales tax issues. Prior to joining Sovos in 2018, he worked as an attorney in Boston. Daniel received his B.A. in Economics from Boston College and J.D. from Boston College Law School. He is a member of the Massachusetts Bar.

More Content by Daniel Kostrzewa
Previous Article
Colorado Extends Grace Period for New Destination Sourcing Rules

The Colorado DOR has issued a "News Release" that has extended their grace period for in-state and out-of-s...

Next Article
Arkansas Legislature Introduces Remote Seller Legislation

New Arkansas bill, if passed, obligates remote sellers to collect and remit sales tax if thresholds meet o...


Regulatory Analysis News - Delivered Weekly

Thank you for subscribing!
Error - something went wrong!