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Store Research

Assembly Bill 28x of 2011x

November 18, 2011

Some bill research does not include the Governor's file because at the time we researched the bill, the sitting Governor had not released his chaptered bill file. If the Governor's file is not included with this particular research, please contact our office (1-530-666-1917 or quote@legintent.com) and we will be happy to provide this file at no charge if it is available. Please Note: Governor files did not exist prior to 1943.

Because of the Commerce clause, courts have determined that an out-of-state retailer must have a physical presence or “substantial nexus” in a state to compel it to collect the use tax on sales to in-state residents. This bill clarifies circumstances under which out-of-state retailers have substantial nexus in California and can be compelled to collect use tax on sales of tangible personal property from California residents ordering online merchandise. Amazon can delay collecting these taxes until Sept. 2012 to see if they can get Congress to settle the issue of how online retailers should be taxed, hoping to preempt California law