Monday is the beginning of tax being applied to on line sales by companies that sell to California residents. Officials estimate that there is 100 thousand dollars in sales tax earned every four days. The California Department of Tax and Fee administration requires non-California businesses to register with the state and start collecting sales tax with all on line purchases. There is a movement on in Sacramento with two politicians introducing AB 147 which would change the rules by lifting the threshold on when on line taxing would begin. The bill proposes that taxing would only occur after $500 thousand dollars in sales before the tax would kick in. They state the reason for the lifting of the ceiling is to give a break to small business. California expects 27 thousand will register by Monday and taxing to over 40 million California residents who purchase on line.
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