Tax & Accounting Blog

California Introduces Two Remote Seller Nexus Bills

Indirect Tax, Sales and Use Tax January 21, 2011

On January 18th two bills relating to the taxation of remote sellers were introduced in the California Assembly, AB 153 by Assembly member Skinner and AB 155 by Assembly member Calderon. Both Ms. Skinner and Mr. Calderon have introduced similar legislation in previous years.

Click-Thru Nexus: AB 153 as introduced would provide if enacted that the term “retailer engaged in business in this state” includes any retailer that enters into an agreement under which a person in California, for a commission or other consideration, directly or indirectly refers potential purchasers of tangible personal property to the retailer.

Remote Seller Reporting & Affiliate Nexus: Enactment of AB 155 would amend the definition of “retailer engaged in business in this state” to mean any retailer that has a substantial nexus with California for purposes of the Commerce Clause of the U.S. Constitution and any retailer upon which federal law permits California to impose a use tax collection duty. The bill would also impose reporting requirements on remote sellers.

No action has been taken on either bill as of yet. It is possible that they may be heard in committee on February 18th.