AB 147 allows the California Department of Tax and Fee Administration (CDTFA) to grant relief to certain retailers engaged in business in the state for specified interest or penalties imposed on use tax liabilities due and payable for tax reporting periods beginning April 1, 2019 and ending December 31, 2022.
Removing competitive advantage of online & out-of-state retailers not collecting sales tax
The lawmakers previously explained that AB 147 removes the competitive advantage of online and out-of-state businesses that did not collect sales tax, over California brick and mortar retailers that did.
In December the state treasurer said, “Amazon and other online retail giants need to do the right thing and level the playing field. They know their customers, they collect the payments, they deliver the products, and their distribution sites are all over our state. They can easily collect the taxes on behalf of their third party sellers to ensure California gets all the tax dollars due.”
