California To Crack Down On Internet Retailers Who Avoid Collecting Taxes

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(Justin Sullivan/Getty Images)

(Justin Sullivan/Getty Images)

SACRAMENTO (CBS/AP) — California plans to crack down on Internet sellers who don’t collect state sales taxes.

The state plans to spend $10 million in the next three years to hire new state auditors and other specialists to enforce the collection.

More than 200 retailers will be warned that they may have to start adding state sales taxes to their prices. The effort could bring in more than $300 million a year in revenues.

Bricks-and-mortar stores must charge sales tax but many online retailers avoided it because they had no business operations on the ground in California.

A law passed last year expands the sales tax requirement to retailers who do substantial California business.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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