Exceeding the new $750,000 click-through nexus threshold for out-of-state sellers in California results in several consequences:

• Sales Tax Obligations: Sellers must register with the California Department of Tax and Fee Administration (CDTFA), collect, and remit sales tax on taxable sales within the state.

• Compliance Deadlines: Sellers have 30 days post-threshold crossing to register and comply, requiring prompt action.

• Penalties for Non-Compliance: Failure to comply can lead to significant penalties, fines, and potential suspension of business operations in California.

• Enhanced Reporting: Sellers must maintain accurate records of sales and transactions to support tax filings and compliance efforts.

• Marketplace Facilitator Role: If applicable, marketplace facilitators may also have responsibilities to ensure tax collection and remittance.

These consequences ensure that out-of-state sellers contributing significantly to California’s economy adhere to the state’s tax regulations, promoting fair competition and increasing state revenue.