Cal. Revenue and Taxation Code - RTC § 6040. Section 6040.
This chapter shall be known as and referred to as the Marketplace Facilitator Act.
ARTICLE 1. General Provisions and Definitions [6040. - 6041.6.]
Cal. Revenue and Taxation Code - RTC 1.
in effectCal. Revenue and Taxation Code - RTC § 6041. Section 6041.
For purposes of this chapter, the following definitions shall apply:
(a)
“Marketplace” means a physical or electronic place, including, but not limited to, a store, booth, internet website, catalog, television or radio broadcast, or a dedicated sales software application, where a marketplace seller sells or offers for sale tangible personal property for delivery in this state regardless of whether the tangible personal property, marketplace seller, or marketplace has a physical presence in this state.
(b)
“Marketplace facilitator” means a person who contracts with marketplace sellers to facilitate for consideration, regardless of whether deducted
as fees from the transaction, the sale of the marketplace seller’s products through a marketplace operated by the person or a related person and who does both of the following:
(1)
Directly or indirectly, through one or more related persons, engages in any of the following:
(A)
Transmitting or otherwise communicating the offer or acceptance between the buyer and seller.
(B)
Owning or operating the infrastructure, electronic or physical, or technology that brings buyers and sellers together.
(C)
Providing a virtual currency that buyers are allowed or required to use to purchase products from the seller.
(D)
Software development or research and development activities related to any of the activities described in paragraph (2), if such activities are directly related to a marketplace operated by the person or a related person.
(2)
Directly or indirectly, through one or more related persons, engages in any of the following activities with respect to the marketplace seller’s products:
(A)
Payment processing services.
(B)
Fulfillment or storage services.
(C)
Listing products for sale.
(D)
Setting prices.
(E)
Branding sales as those
of the marketplace facilitator.
(F)
Order taking.
(G)
Providing customer service or accepting or assisting with returns or exchanges.
(c)
“Marketplace seller” means a person who has an agreement with a marketplace facilitator and makes retail sales of tangible personal property through a marketplace owned, operated, or controlled by a marketplace facilitator, even if that person would not have been required to hold a seller’s permit or permits, or required to collect the taxes imposed pursuant to Chapter 2 (commencing with Section 6051) or Chapter 3 (commencing with Section 6201), or a fee administered pursuant to Part 30 (commencing with Section 55001), had the sale not been made through that
marketplace.
Cal. Revenue and Taxation Code - RTC § 6041.1. Section 6041.1.
Newspapers, internet websites, and other entities that advertise tangible personal property for sale, refer purchasers to the seller by telephone, internet link, or other similar means to complete the sale, and do not participate further in the sale are not facilitating a sale under this chapter.
Cal. Revenue and Taxation Code - RTC § 6041.2. Section 6041.2.
For purposes of this chapter, the following shall apply:
(a)
A person is related to another person if both persons are related to each other pursuant to Section 267(b) of the Internal Revenue Code and the regulations thereunder.
(b)
(1)
A “fee administered pursuant to Part 30 (commencing with Section 55001)” shall include a charge pursuant to the Lead-Acid Battery Recycling Act of 2016 (Article 10.5 (commencing with Section 25215) of Chapter 6.5 of Division 20 of the Health and Safety Code), a lumber products assessment pursuant to Article 9.5 (commencing with Section 4629) of Chapter 8 of Part 2 of Division 4 of the Public Resources Code, a fee imposed pursuant to the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460) of Part 3 of Division 30 of the Public Resources Code), and a California tire fee pursuant to Article 5 (commencing with Section 42885) of Chapter 17 of Part 3 of Division 30 of the Public Resources Code.
(2)
A “fee administered pursuant to Part 30 (commencing with Section 55001)” shall not include the fee administered pursuant to Part 21.1 (commencing with Section 42100).
Cal. Revenue and Taxation Code - RTC § 6041.5. Section 6041.5.
(a)
Notwithstanding Section 6041, a person that is a delivery network company is not a marketplace facilitator for purposes of this chapter.
(b)
For purposes of this section, all of the following definitions shall apply:
(1)
“Delivery network company” means a business entity that
maintains an internet website or mobile application used to facilitate delivery services for the sale of local products.
(2)
“Delivery services” means the pickup of one or more local products from a local merchant and delivery of the local products to a customer. “Delivery services” do not include any delivery requiring over 75 miles of travel from the local merchant to the customer.
(3)
“Local merchant” means a third-party merchant, including, but not limited to, a kitchen, restaurant, grocery store, retail store, convenience store, or business of another type, that is not under common ownership or control with the delivery network company.
(4)
“Local product” means any item, including food, other than freight, mail, or a package to which postage has been affixed.
(c)
Notwithstanding subdivision (a), a delivery network company that meets the definition set forth in subdivision (b) of Section 6041 may elect, in a reasonable manner and duration prescribed by the department, to be deemed a marketplace facilitator pursuant to this chapter. Consistent with this section, the department shall adopt regulations that establish the criteria for obtaining and retaining an election to be a marketplace facilitator pursuant to this subdivision.
Cal. Revenue and Taxation Code - RTC § 6041.6. Section 6041.6.
(a)
Notwithstanding Section 6041, a person that is a vehicle rental broker is not a marketplace facilitator with respect to the facilitation, for a commission, fee, or other consideration, of a passenger vehicle rental on behalf of a rental company that is not a related person for purposes of this chapter.
(b)
For purposes of this section,
the following definitions apply:
(1)
“Optional accessory” includes, but is not limited to, a child seat, a GPS navigation system, snow chains or other traction device, and a ski rack.
(2)
“Passenger vehicle” has the same meaning as defined in Section 465 of the Vehicle Code.
(3)
“Passenger vehicle rental” means any lease of a passenger vehicle, including any optional accessory, which is classified as a “continuing sale” and a “continuing purchase” in accordance with Sections 6006.1 and 6010.1.
(4)
“Rental company” means a person or entity in the business of leasing passenger vehicles to the public and that is registered with the
department under Chapter 2 (commencing with Section 6051) or Chapter 3 (commencing with Section 6201).
(5)
“Vehicle rental broker” means a person that facilitates, for a commission, fee, or other consideration, passenger vehicle rentals through an online marketplace owned, operated, or controlled by the person or a related person.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026