California Announces New Use Tax Collection Requirements for In-state and Out-of-state Retailers.

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The California Department of Tax and Fee Administration (CDTFA) announced that beginning April 1, out-of-state retailers selling above certain thresholds into California will be required to collect California use taxes on their sales into California.

The Special Notice (cdtfa.ca.gov/taxes-and-fees/L565.pdf) also impacts in-state and out-of-state retailers' obligations to collect and remit district use taxes adopted by California localities.

The new use tax collection requirement is not retroactive and applies only to sales made on and after April 1. For out-of-state retailers, the new collection requirement applies if, during the preceding or current calendar year, the retailer's sales for delivery into California exceed $100,000 or the retailer makes sales for delivery into...