The California Department of Tax and Fee Administration held an Interested Parties Meeting to address proposed regulation 1684.5 on marketplace sales. The proposed regulation defines terms used in the Marketplace Facilitator Act (added by AB 147), explains the registration requirements for marketplace facilitators and marketplace sellers, clarifies when a marketplace facilitator is the seller and retailer, and provides election procedures for a delivery network company to be deemed a marketplace facilitator. After the comment period closes on October 30, the Department will decide whether to proceed with formal rulemaking as authorized by the Marketplace Facilitator Act. The Department also has the authority to adopt emergency regulations through June 2020, which, if adopted, will remain in effect for two years.

The Department’s discussion paper can be found here.