HTTP 403: ACCESS DENIED: California online sales tax collection hits a snag

California’s new requirement for online out-of-state retailers to collect state and local sales tax on goods purchased goes into effect tomorrow. While it is estimated to bring in an additional $317 million annually, online retailers such as Amazon and Overstock.com have cleverly taken steps to avoid such collections.

The law requires the collection of taxes if the retailers have some connection to California, such as employees, warehouses or distribution centers. Big online sellers have provided notice to marketing partners in California that they will be serving ties in order to preserve a lack of contact with California and thus, avoid the requirement to collect taxes. And what of those marketing partners operating in California? Many are making plans to leave the state in order to maintain their lucrative partnerships with big online retailers.  Check out: LA Times for more.

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