Relief May Be Available to Marketplace Sellers Using Fulfillment Centers in California.

If you are an out-of-state retailer that is or was "engaged in business" in California solely because you used a marketplace facilitator to facilitate sales of your merchandise for delivery in this state, and the marketplace facilitator stored your inventory in California, you may be a "qualifying retailer" and entitled to reduced liability for certain taxes, penalties and interest.

California's recently passed legislation prohibits the California Department of Tax and Fee Administration from assessing sales and use taxes on sales made by a "qualifying retailer" prior to April 1, 2016, and requires the CDTFA to relieve any penalties imposed on a "qualifying retailer" with respect to sales made for the period April 1, 2016, to March 31, 2019.

Who is a qualifying retailer? Effective June 27, 2019, you are a qualifying retailer per RTC Sec. 6487.07 if you meet all of the following conditions:

* You did not register with the CDTFA under the Sales and Use Tax Law prior to Dec. 1, 2018,

* You did not file sales or use tax returns or make sales or use tax payments prior to being contacted by the CDTFA.

You voluntarily register with the CDTFA, and by Sept, 25, 2019, file completed tax returns for all tax reporting...