Use tax: notification to purchasers: retailer engaged in business: controlled group.

The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, or, and on the storage, use, or other consumption in this state of, tangible personal property purchased from a retailer for storage, use, or other consumption in this state. That law requires every retailer engaged in business in this state, as specified, and making sales of tangible personal property for storage, use, or other consumption in this state to, at the time of making the sales or, if the storage, use, or other consumption of the tangible personal property is not then taxable, at the time the storage, use, or other consumption becomes taxable, collect the tax from the purchaser. This bill would provide a rebuttable presumption that any retailer that is part of a controlled group of corporations, and that controlled group of corporations has a component member that is a retailer engaged in business in this state, as described, is presumed to be a retailer engaged in business in this state. This bill would require each retailer that is not required to collect use tax to provide notification on its retail Internet Web site or catalogue that tax is imposed on the storage, use, or other consumption in this state of the tangible personal property purchased from the retailer that is not exempt, and is required to be paid by the purchaser, as provided. This bill would provide that its provisions are severable.