After months of deliberation, the California Department of Tax and Fee Administration (CDTFA) has come up with a response to South Dakota v. Wayfair, Inc., the decision by the Supreme Court of the United States that overruled the physical presence rule preventing states from taxing remote sales. California will require out-of-state sellers with a certain amount of economic activity in the state to collect and remit sales tax* starting April 1, 2019.

It’s a new world for online sellers now that the U.S. Supreme Court repealed the long-standing rule that a state can only tax businesses with a physical presence in the state. Although states have tried to increase sales tax collections from out-of-state sellers for years, remote businesses have largely been protected from state taxing authorities by the physical presence rule.