Assembly Bill 2412 (Migden and Aroner), now pending in the California Legislature, would drastically expand the California rules for nexus to tax under the California Sales and Use Tax Law. The bill should be of high interest to Internet retailers who do not have a physical presence in California. A.B. 2412 would expand California law to provide that a retailer has nexus with California based solely on the relationship between the out-of-state retailer and another retailer who does have nexus with California.
(The remainder of this article can be accessed in the July/August 2000 edition of Cyberspace Lawyer.)