The passage of ACA 13 would not only alter the flow of tax revenues but also aim to increase local tax revenues from internet transactions. By defining qualified retailers and establishing new protocols for sales tax collection at the point of delivery, cities and counties could better capture the economic benefits of online sales. This could enable local governments to fund public services through enhanced sales tax revenue, promoting growth and stability within local economies.
Summary
ACA 13, introduced by Assembly Member Obernolte, proposes an amendment to the California Constitution concerning local sales taxation, specifically addressing online sales. The bill aims to modify how sales tax revenue is allocated for transactions conducted online. Under this amendment, the retail sale of tangible personal property by qualified retailers that occur online would be considered consummated at the delivery location, rather than at the retailer's place of business. This significant change is set to take effect on January 1, 2021, aligning the revenue collection process for e-commerce with traditional brick-and-mortar sales.
Contention
However, this amendment has sparked debates regarding equity and local control. Opponents may argue that the changes could undermine local revenues by shifting the point of sale for taxation, potentially disadvantaging local businesses that compete with larger online retailers. There is a concern that redefining where sales taxes are deemed to occur could complicate compliance, particularly for cities with existing agreements under the Bradley-Burns Uniform Local Sales and Use Tax Law. Furthermore, some lawmakers might see this as a move towards greater state control over taxation, raising alarms about local governance and authority.
Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.