Legislative Proposal Could Create Uncertainties Beyond Sales Tax Revenue

Last month, we reported on Fresno Mayor, Lee Brand’s opposition to a controversial legislative proposal to alter the point of tax collection for online retailers from where the product delivery originated to the place of delivery. According to Mayor Brand, SCA 20 (Glazer) would result in a loss of $91 million in revenue in the City of Fresno.

A recent publication from MuniServices / Avenu suggests that in addition to unknown revenue losses or gains at the city and county level, the proposal brings other uncertainties. Businesses, for example, could be expected to experience “increased errors” and higher administration costs due to the ambiguous nature of where taxes should be reported. 

SCA 20 was scheduled to be considered on May 25th, but was postponed to a later date yet to be determined. If approved by the legislature, the bill will require voter-approval for implementation.

To read more about SCA 20, click here.


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