3 ms·
That's because California has tax-hungry laws concerning what defines a "nexus" (a business's presence in the state). It's difficult for many companies to avoi
by storborg 16y ago
That's because California has tax-hungry laws concerning what defines a "nexus" (a business's presence in the state). It's difficult for many companies to avoid creating a California presence, so they're stuck collecting California sales tax as if they were based there.
- Vivtek 16y agoDoesn't every state have similar laws? Indiana does - yet I don't normally pay sales tax online, because most of the companies aren't based in Indiana, whereas online companies really do tend to be in California.
- storborg 16y agoLots of states, but not every state. California is also of particular importance because it's so big: nobody would care as much if Delaware had laws like this. However, in California, even if you only have a physical presence in some remote part of northern CA, suddenly that affects your ability to sell to 37 million other people.
- 3am 16y agoI have firsthand experience in online retail and if California is 'tax hungry' for that reason, then every other state in the country is, also. If you have payroll in a state, you collect sales taxes for physical items shipping there.