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Tax Law

California Amends Remote Seller Regulations

The California Department of Tax and Fee Administration announced that the state’s Office of Administrative Law has approved amendments to regulations on the state’s remote seller law. The amendments are retroactive to April 1, 2019, the effective date of the legislation.

Under the amended regulations, a remote seller that did not surpass the $500,000 per calendar year threshold in the previous calendar year is required to register and begin collection immediately after the sale that exceeds $500,000 in a current calendar year. Additionally, a remote seller is not obligated to remain registered on January 1 if it did not meet the $500,000 threshold in the previous calendar year, although a remote seller should not close its registration if it anticipates that it will be required to re-register during the calendar year.