She’s on a mission to uncover unusual tax facts and make complex laws and legislation more digestible for accounting and business professionals. California’s economic nexus rules state that if the company’s sales to California (shipped from outside of California) exceed the lesserof $500,000 (indexed for inflation) of 25 percent of the taxpayer’s total sales, the taxpayer is deemed to have economic nexus. window.location.href = suggestion.permalink; The California Department of Tax and Fee Administration (CDTFA) explains that the date change "eliminates the retroactive effect of AB 147 with regard to the new district use tax collection requirement." Now they’ve changed. /* We do not deal with arrays. jQuery(window).scroll(function() { Do you have more questions on how economic nexus works after this ruling? Annual sales to have economic nexus thresholds for sales and use tax collection requirement is not retroactive applies! 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