Overview of E-Commerce Taxation in California

The rapid expansion of e-commerce has led to amplified significance and dispute on if and how e-commerce should be taxed. As more people rely on the use of Internet portals for shopping and other e-commerce activities, state government stand to lose millions of dollars in sales tax revenues if e-commerce is not taxed, or if the tax dollars generated from e-commerce by state residents are transferred to out-of-state entities. This is of particular concern to local governments in the state of California that receive a significant portion of their revenue from sales tax revenues.

The following questions have been addressed in this article:

Are e-commerce retailers in California required to collect sales tax?
Under what conditions can California levy a tax on sales to California residents?


Facebook Twitter RSS