California Shrinks Outdated Use Tax Program in Wake of ‘Wayfair’

An outdated California program to collect use tax on out-of-state purchases will be pared down under a new state law.

Gov. Gavin Newsom (D) signed the measure (A.B. 1097) Saturday to streamline the Qualified Purchaser Program, which was created in 2009 to help close an estimated $2 billion gap between the amount of use tax owed and the amount collected. Use tax is a form of sales tax levied on items purchased from sellers in other states for use within California.

• The qualified purchaser program requires retailers with at least $100,000 a year in gross receipts to register ...