Hastings Constitutional Law Quarterly


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's 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's needs.