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California's Amazon Tax Does Not Apply to All

  • Nov 27, 2012 | Gail Cole

Apparently there has been some confusion over California's new online sales tax law, AB 155, popularly known as the Amazon tax. In response to this confusion, George Runner of the California Board of Equalization has issued a news release reminding that "many online sellers don't have to collect sales tax."

The law, which took effect on September 15 of this year, requires remote retailers that do not have a physical presence in California to register with the BOE (eReg) and report and collect California use tax "if the retailer has:

  • More than $10,000 in sales to California customers through referral from California-based affiliates, and,
  • Sold more than $1 million in tangible personal property to California consumers in the past 12 months. "

Retailers that do not meet the above provisions are not affected by AB 155.

The California Board of Equalization has notified more than 200 remote sellers about the Amazon tax. According to George Runner,  "To date, only a handful [of out-of-state retailers] have responded by beginning to collect sales tax.

Efforts to administer AB 155 will be aided by additional employees: the BOE has announced it will add more than 35 positions by Fiscal Year 2014-15.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.