Unfortunately, the article you refer to talks about an initiative by 40 states regarding the collection of Sales & Use Taxes. It isn't clear whether CA is one of them. More importantly, while "collection" of sales tax may not be mandatory, the obligation of "Payment" of the sales tax IS Mandatory by the seller to the State. If a seller does not collect it, then he/she will owe it themselves to the Franchise Tax Board themselves. I originally did not charge Sales Tax, but was forced to cough up the tax myself.

While I would love to stop charging and paying it, I cannot ignore the directions of my accountant -- and the direction of the reps of the CA Franchise Tax Board with whom I have talked (I spent 3 days on this issue a couple years ago) -- unless I can find some sort of exemption on the CA Franchise Tax Board website/official rules. I have re-examined the rules in response to your posting. While one might make the argument that because it refers to "businesses" that individuals are exempt. Unfortunately, I have been advised that anyone selling more than 6 items in separate sales throughout a one year period is considered a "business" by the CA version of Big Brother.

I am aware that when I sell an item, and an out of state seller sells an identical item, CA based buyers will go with that other Seller. I am very frustrated about it. However, if audited, I can't use as a defense the article you refer to. I would need a clear definition or exemption from CA State documents themslelves.

If you know of such docs, I will gladly review them immediately.

Thanks

Dave W.