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End of Sales Tax Free Online Sales

  Sanjiv Gupta CPA  Published 

Online retailers have tried their best to avoid this day but it is hard to win against uncle sam.

 Why does the State of California love online Sales Tax?

State officials of California are estimating that they can generate over $200 million a year to fill the budget holes by collecting online sales tax.  Under the current use tax rule, Californians are supposed to pay the equivalent of sales tax on their state income tax. However, California rarely collects this tax and ends up losing about $1 billion every year.