LEGISLATIVE COUNSEL'S DIGEST


AB 178, as introduced, Skinner. Sales and use taxes.
The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property. That law imposes the
sales tax upon "retailers," and defines a "retailer engaged in
business in this state" to include specified entities. Existing law
also provides that every retailer engaged in business in this state
and making sales of tangible personal property for storage, use, or
other consumption in this state, that engages in specified activities
in this state shall, at the time of sale or at the time the storage,
use, or other consumption becomes taxable, collect the tax from the
purchaser.
This bill would include in the definition of a "retailer engaging
in business in this state" a retailer entering into an agreement with
a resident of this state under which the resident, for a commission
or other consideration, directly or indirectly refers potential
customers, whether by a link or an Internet Web site or otherwise, to
the retailer, if the cumulative gross receipts or sales price from
sales by the retailer to customers in this state who are referred
pursuant to these agreements is in excess of $10,000 during the
preceding 4 calendar quarterly periods, except as specified.

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Comments/questions on AB 178 (Charles Calderon and Skinner): Sales and use taxes.