Bill > AB155

This bill repeals and reenacts Section 6203 of the Revenue and Taxation Code, which deals with the collection of sales and use taxes by retailers. The core purpose is to clarify and update the definition of a "retailer engaged in business in this state," which determines when a retailer is obligated to collect taxes on sales made to California consumers. The bill introduces two versions of Section 6203, with the second version (Section 3 of the bill) becoming operative under specific conditions related to federal law and its enactment date, aiming to align California's tax collection rules with potential federal authorization for states to require out-of-state retailers to collect taxes regardless of the seller's physical location. The updated definition expands the circumstances under which a retailer is considered "engaged in business in this state," including those with substantial connections to California, those benefiting from in-state activities like marketing or service facilities, and those with affiliate relationships or referral agreements that generate significant sales within the state, while also providing some exceptions for temporary convention and trade show activities. The bill also declares an urgency, stating that immediate clarification of retailers' tax collection obligations is necessary for public peace, health, and safety.