Businesses Object to California Online Marketplace Rule Changes

Online advertisers and websites that list items for sale in California but aren’t involved in payment processing could be newly on the hook for collecting and remitting sales tax on those items under proposed regulatory changes, tax practitioners said Tuesday.

The California Department of Tax and Fee Administration’s proposed changes to rules for online marketplace sales would expand the types of businesses that would fall under them despite the department’s claim that they wouldn’t apply to anyone who isn’t already liable under the current rules, Joan Armenta-Roberts, sales tax consultant for the California Taxpayers Association, said during a public hearing ...