In 2024, new regulations mandate that all online sales platforms must collect and remit sales tax regardless of the seller’s size. This means:

• Economic Nexus Threshold: Remote sellers exceeding $500,000 in annual sales within California must register, collect, and remit sales tax.

• Marketplace Facilitators: Platforms like Amazon, Etsy, and eBay are responsible for collecting and remitting sales tax on behalf of sellers.

• Simplified Compliance: Individual sellers benefit from marketplace facilitators handling tax collection, reducing their administrative burden.

• Fair Competition: Ensures online and brick-and-mortar retailers operate on a level playing field, preventing tax avoidance by online sellers.

These regulations enhance compliance, increase state revenue, and promote fair competition within California’s retail market.