Board of Equalization Member Senator George Runner today issued the following statement in response to the Assembly Revenue and Taxation Committee’s decision to move Assembly Bill 153 (Skinner) to its suspense file:
“I am encouraged by the Committee’s decision to hold Assemblywoman Skinner’s Affiliate Nexus tax legislation for further study. Close scrutiny of the bill will show that it does nothing to create jobs, nor increase state revenues.
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“What’s worse is that this measure puts 25,000 affiliate-based businesses in California at risk. As a result, the state could actually lose money when these businesses are forced to leave the state.
“Existing law is clear. California cannot require out-of-state retailers to charge sales tax. Instead California consumers are required to pay use tax on purchases they make from out-of-state retailers.”