California to Require Out-of-state Retailers to Collect and Pay Use Tax in 2019

Dec 17th, 2018

Effective April 1, 2019, a retailer located outside of California is required to collect use tax if, during the preceding or current calendar year, (1) the retailer's sales into California exceed $100,000, or (2) the retailer made sales into California in 200 or more separate transactions.

This requirement applies to retailers that sell tangible goods for delivery into the state through the internet, mail-order catalogs, telephone, or any other means.

This requirement applies only to sales made on or after April 1, 2019. However, retailers may voluntarily register with the Department of Tax & Fee Administration to collect and remit tax prior to this date.