- New legislation sets California’s sales and use tax economic nexus threshold to $500,000.
- New legislation creates Marketplace Facilitator Act, statutorily defining marketplace facilitators as retailers and sellers.
On April 25, 2019, California enacted comprehensive marketplace facilitator legislation. Many said last fall this would be an impossible feat given the divided constituency of the California Legislature on whether all marketplace facilitators should be treated equally for purposes of imposing California’s Sales and Use Tax law. Consider the impossible achieved. California’s sweeping Marketplace Facilitator Act, adopted under Assembly Bill (AB) 147, treats virtually all marketplaces the same.