Can I Report California Online Retailers Not Charging Sales Tax

In my niche, most of the California online retailers are not charging sales tax as they should according to the new law California passed. I’ve contacted them asking if they would start charging sales tax because of the new law, and they said they haven’t heard of that law. Is there a way I can report them so that they will start charging sales tax.

The retailers are based in California (there warehouse, offices, ect.). These retailers are not charging sales tax to out of state customers. My understanding of the law was that retailers that are based in California need to charge sales tax to out of state residents.

Can you explain further?

By “California online retailers” do you mean retailers with a physical presence in California?

Are you referring to the new law that attempts to establish nexus in California for retailers outside of California that have affiliates in California?

By “not charging sales tax” do you mean that you are a California resident and expected some company to charge you your state’s sales tax? Even retailers with a clear nexus in California don’t need to collect sales tax for residents outside California.

Regardless of the answers, you can always file a report, though you may be making false claims and trouble for a company that doesn’t deserve it. Just report it to the California Board of Equalization, the government department that collects sales tax for the state.

If someone didn’t collect sales tax from you and you believe they should have, you are required to pay the tax on that purchase as part of your Use Tax return. Failure to do so will surely be reported! :wink:

You collect sales tax for the states you have a physical presence in. No other state can require you to collect their sales tax – they have no legal authority to do so. Only the federal government can create laws regulating interstate commerce.

The new California law’s aim was to establish that physical presence in California for out-of-state retailers based on their paying affiliate commissions to people living in the state, so that they’d have legal standing to make them collect California sales tax from California residents.

Thanks for clearing that up for me.