Sales and use Taxes: collection.
The amendments proposed in SB 1128 are mainly nonsubstantive and do not substantially change existing tax codes but are intended to affirm the responsibilities of retailers under current law. This bill aims to improve compliance with tax collection processes, potentially reducing confusion and compliance costs for businesses. However, as these amendments are framed as nonsubstantive, their impact on the existing legislative landscape appears to be minimal, focusing primarily on clarification.
Senate Bill 1128, introduced by Senator Bates on February 16, 2022, amends Section 6203 of the Revenue and Taxation Code of California regarding sales and use tax collection. The primary purpose of this bill is to clarify and simplify the requirements for retailers engaged in the sale of tangible personal property, ensuring that they collect tax from purchasers at the time of sale or when the use of the property becomes taxable. Importantly, it affirms the obligation of retailers to provide purchasers with a receipt to ensure proper tax documentation is maintained.
While the bill is mostly administrative in nature, any discussions around it may contend with broader tax policy debates, particularly on the adequacy of existing sales tax laws and their fairness in relation to various types of retailers. There may also be stakeholders concerned about how these clarifications affect small businesses versus larger retailers, particularly regarding compliance burdens.