Where California Went Wrong with the Amazon Tax: Application of Due Process and Commerce Clause Jurisprudence to State Use Tax Collection Requirements Imposed on Out-of-State Internet Retailers

Abstract

California recently enacted legislation that aims to collect revenue from a novel source: out-of-state internet retailers. The statute achieves this goal by imposing greater responsibilities for collection of use taxes on these retailers. While the State\u27s objective is laudable, the new law missed the mark from the start. The use tax collection law makes an exception for out-of-state online retailers that engage in their business through Google, Inc., an internet business having an obvious California nexus. This Note analyzes long-standing and recent case authority and legislative policy to provide an alternative that will better meet the State\u27s needs