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State seeks to make delivery platforms 'marketplace facilitators' to reduce sales-tax confusion
Summary
CDTFA proposed treating delivery network companies as marketplace facilitators so they must collect and remit sales tax; agency estimates about $44 million in additional annual tax revenue and says the change will reduce compliance errors by small merchants.
The California Department of Tax and Fee Administration proposed making delivery network companies (DNCs) — such as DoorDash and Uber Eats — marketplace facilitators under state sales-tax rules, which would make those platforms responsible for collecting and remitting sales tax on facilitated transactions.
"This proposal would make all delivery network companies a marketplace facilitator alleviating the…
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