Wayfair Update

The Assembly Revenue & Taxation Committee has passed AB 147 to address the Wayfair thresholds. The bill now has an urgency clause and the legislature is working to pass it quickly, ideally before April 1, to avoid enacting the lower thresholds established by CDTFA (200 transactions or $100,000 in sales).
 
As a reminder, AB 147 raises the sales tax filing threshold to $500,000 in sales in California. This bill has wide support and is beneficial for EAs, because it would reduce the number of individuals and businesses that have to file sales tax. The bill also creates new terms such as “marketplace facilitator” to describe large marketplaces like Amazon and eBay, and “marketplace sellers” to describe persons who use those sites to sell their goods. You can read the Committee’s analysis of the bill here.