Tax & Accounting Blog

California BOE Moving Forward with Enforcement of Affiliate Nexus Tax

Indirect Tax, ONESOURCE, Sales and Use Tax, Sales Tax Nexus August 2, 2011

The California Board of Equalization (BOE) voted 3-2 to move forward with implementation of ABx1 28, an affiliate nexus tax bill, despite the fact that the California Attorney General  has given online retailers permission to begin collecting signatures for a ballot initiative that would overturn the nexus law.

At the meeting, the BOE ordered staff to start implementing the law while simultaneously seeking to obtain an opinion from the attorney general about the impact of a referendum process as the office of legislative counsel issued a recent opinion saying the law would be suspended the minute the issue qualifies for the ballot.

BOE board members voting to move forward with enforcement argued the law is in effect and must be upheld by the BOE unless and until it is repealed either by the voters, or in a court of law.