State of Wayfair: $500 Million ‘Wayfair’ Windfall in California

California could collect more than $500 million a year in tax from online sales under rules set to take effect April 1.

The revenue estimate is tucked in Gov. Gavin Newsom’s first proposed budget, released Jan. 10. According to the Department of Finance, California’s plan to follow South Dakota’s tax collection thresholds for out-of-state retailers will bring in $219 million between April 1 and June 30, when the fiscal year ends.

Applied to an entire fiscal year, the state’s new policy will bring in $554 million from July 1, 2019, to June 30, 2020, according to Newsom’s budget proposal. ...