California's marketplace nexus standards ensure fair competition by mandating that all sellers, regardless of their business model or size, collect and remit sales tax if they exceed the economic nexus thresholds. Marketplace facilitators like Amazon and eBay are responsible for handling sales tax collection on behalf of sellers using their platforms. This levels the playing field by:

• Preventing Tax Avoidance: Online sellers cannot gain a competitive advantage by avoiding sales tax obligations.

• Equal Contribution: Both online and brick-and-mortar retailers contribute equally to state revenues.

• Simplified Compliance: Marketplace facilitators streamline the tax collection process, reducing administrative burdens for individual sellers.

• Promoting Fair Competition: Ensures that all retailers adhere to the same tax rules, fostering a competitive and equitable market environment.

These standards promote fairness, prevent tax evasion, and support balanced growth between online and physical retail sectors in California.