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Cyber Shopping Brings Sales Tax Revenue for California

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(Sacramento, CA)
Monday, November 26, 2012

Since September 15th, 200 out-of-state companies with major business in California are on the hook to collect sales taxes.

The law applies to any company that makes more than $1 million in sales a year to Californians.

It also applies to out-of-state companies that have a local business operation in the state making more than $10,000. George Runner, with the Board of Equalization, says the change means increasing revenues for the state.

RUNNER: "Not only Cyber Monday, but every day more consumers are buying things online, and so these are big dollars for the state of California when it comes to sales tax as we enter into the Christmas holiday season."

Runner says it's unclear if the law will make a dent in the state's budget.

So far it's brought in almost 12 million dollars through the end of October. 

Since the 1930's, consumers have had to pay a use tax if an out of state retailer doesn't collect the sales tax.

Altogether the taxes are expected to bring in $107 million for the current fiscal year and $158-million in the next fiscal year.

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