E-Commerce Realities Could Mint New California Sales Tax Winners

California’s local sales tax rules, rooted in the 1950s, create significant losses for two-thirds of the state’s cities and bonanzas for fewer than 30 in the e-commerce era, according to a state report that quantifies the impact of the rules for the first time.

The new report from the California Department of Tax and Fee Administration shows how California’s local sales tax rules skew the fortunes of cities depending on where retail giants like Apple, Best Buy, or Amazon.com Inc. decide to locate warehouses or assign their online sales.

With tension between cities intensifying as online shopping has exploded, the ...