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SALT LAKE CITY — A new law in California lets the state’s Tax and Fee Administration collect three years’ worth of back sales taxes from any out of state companies who use the “Fulfilled By Amazon” service from the online retailer.
But businesses in Utah are calling that unfair because they were not legally required to collect sales taxes until last year’s Supreme Court case South Dakota vs. Wayfair.
Christine Krogue, who owns Mama Moon Boutique, says they’ve always followed the rules, and she feels it’s an undue burden on companies like hers.
“Small businesses are not going to be able to afford all that accounting without drastically raising prices,” Krogue says.
And they could be faced with large tax bills.
“It’ll probably be tens of thousands of dollars for us,” Krogue says.
California has not contacted Krogue or her business yet about any taxes.
The Tax and Fee Administration originally wanted businesses to pay seven years’ worth of back taxes because that’s when California started requiring large online platforms to collect them.