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SB-792 Sales and use tax: retailers: reporting.(2021-2022)

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Date Published: 02/20/2021 04:00 AM
SB792:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 792

Introduced by Senator Glazer
(Coauthor: Senator Hertzberg)

February 19, 2021

An act to add Section 7055.5 to the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SB 792, as introduced, Glazer. Sales and use tax: retailers: reporting.
The Sales and Use Tax Law, administered and enforced by the California Department of Tax and Fee Administration, imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. Existing law defines “retailer” to include, among others, every seller who makes a retail sale of tangible personal property and every person engaged in the business of making retail sales at auction of tangible personal property, as provided. Existing law authorizes the department to require the filing of reports by any person or class of persons with information relating to sales of tangible personal property the storage, use, or other consumption of which is subject to the use tax, as specified.
This bill would require a retailer whose annual sales of tangible personal property transacted online exceeded $1,000,000 for the previous calendar year to track and report to the department the city or ZIP code where the purchaser resides for each sale within the state that is transacted online, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7055.5 is added to the Revenue and Taxation Code, to read:

7055.5.
 (a) (1) A retailer whose annual sales of tangible personal property transacted online exceeded one million dollars ($1,000,000) for the previous calendar year shall track and report to the California Department of Tax and Fee Administration the city or ZIP code where the purchaser resides for each sale within the state that is transacted online.
(2) A retailer shall report the information described in subdivision (a) on the same schedule the retailer reports sales to the department.
(b) A sale is “transacted online” if both of the following conditions are met:
(1) The purchaser’s order and payment for the sale and purchase of tangible personal property is transacted and completed on an internet website or web-based application.
(2) The purchaser’s order and payment for the sale and purchase of tangible personal property is not initiated by the retailer using the retailer’s equipment at the retailer’s place of business.
(c) For purposes of this section, “retailer” means a retailer as defined by Section 6015.