New Laws Archives

Online Retailers May Get Post-Wayfair Relief

Help may be coming for retailers concerned with the abrupt change in the law last year that may require many retailers to begin collecting tax on sales to customers in a state regardless of whether the retailer has a physical presence in the state. In 2018, the U.S. Supreme Court's holding in Wayfair v. South Dakota allowed states to require remote retailers to collect taxes and fees on sales in their state if the seller was deemed to have an economic nexus with the state, regardless of any physical presence. On January 9, 2019, relief legislation was announced, known as the "Protecting Business from Burdensome Compliance Cost Act," which would delay the imposition of new laws to January 1, 2020, and would require states to streamline the tax rate and submission requirements.  Click here to read about HR 379.

Shippers May Be Liable for Wage Payments Related to Certain California Port Trucking Companies

Effective January 1, 2019, under California Labor Code Section 2810.4, customers of certain port trucking companies may be held liable for unpaid wages due to commercial truck drivers, as well as any related assessments. According to the DLSE:

California Considers Text Messaging Tax

The California Public Utilities Commission recently released a decision finding that text messaging services could be subject to Public Purpose Program surcharges, as suggested by Commissioner Carla J. Peterman. The proposed decision does not have legal effect at this time, and the Commission is opening an additional phase during which it will consider transparency, competition, and methods to implement the proposed fees. For more information, click here: http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M238/K227/238227359.PDF.

California's New 2019 Rules for Sales & Use Tax for Out-of-State Businesses

The California Department of Tax and Fee Administration (CDTFA) announced this week that, starting April 1, 2019, out-of-state retailers whose sales for delivery into California exceed $100,000 or 200 deliveries will be required to register with California and collect and pay over sales tax. Businesses that meet these thresholds for a single local jurisdiction will also need to collect and pay over that district's use tax, in addition to the state tax.

California Assembly Members File Competing Bills Following California Supreme Court Dynamex Decision

January 24, 2019 Update:  On January 17, 2019, Assembly Bill AB 71 (Melendez) (seeking to statutorily supersede the narrow holding in Dynamex, by codifying the widely accepted factors in Borello) was referred to the Assembly Committee on Labor & Employment. Assembly Bill AB 5 (Gonzales) (seeking to codify Dynamex and clarify the decision's application in state law) is an active bill and pending referral to a committee.

Ohio Becomes First State to Accept Bitcoin for Tax Payments

The Treasurer of Ohio announced this week that taxpayers in his state will be able to pay business taxes with cryptocurrency - making Ohio the first state in the U.S. to do so.

California Post-Wayfair Update: Change is On the Horizon

The California Legislative Analyst's Office (LAO) released a fiscal outlook report recently that indicates California will soon be implementing changes to sales and use tax collection for out-of-state businesses in the wake of the June 2018 Wayfair decision. "The administration plans to start registering out-of-state taxpayers soon," the LAO wrote, and anticipates increases to state revenue from related changes starting around $100 million or more in the next couple years. To read the full report, click here.

Good News for Taxpayers with Defunct California Entities!

California taxpayers who ceased doing business but continue to get requests for unpaid taxes or unfiled returns from the Franchise Tax Board (FTB) may benefit from a new bill, AB 2503, which goes into effect January 1, 2019, and provides two options for an administrative dissolution of qualified domestic corporations and LLCs. The FTB will be able to administratively dissolve a business that has been suspended for 5 years or longer, or has ceased doing business, and meets other qualifications. Otherwise, taxpayers may request that the FTB abate unpaid, qualified taxes, interest, and penalties for years for which the entity certifies under penalty of perjury that it did not do business and has no remaining assets.

Legislators Seek to Limit Impact of Wayfair Decision through New House Bill

On September 13, 2018, a bill was introduced in the U.S. House of Representatives "to prohibit States from retroactively imposing a sales tax collection duty on a remote seller," among other purposes. H.R. 6824, also called the Online Sales Simplicity and Small Business Relief Act of 2018, seeks to limit the impact of the recent Wayfair decision, which eliminated the need for a business to be physically present in a state in order to have economic nexus in that state.

Californians to Vote on Two Tax-Related Ballot Measures in June 2018

Californians will be able to vote on two new legislative measures related to taxes on the June 5, 2018 Statewide Direct Primary Election ballot.

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