CA AB2078

Establishes a rebuttable presumption that any retailer part of a controlled group of corporations is engaged in business in California if another member of that group is engaged in business in the state, unless rebutted by evidence the member did not engage in specified activities on behalf of the retailer.

Requires retailers not required to collect use tax to provide readily visible notification on their retail Internet website or catalogue that use tax is imposed on tangible personal property purchased from them and must be paid by the purchaser.

Defines "controlled group of corporations" and "component member" by reference to sections 1563(a) and 1563(b) of the Internal Revenue Code.

Declares the bill's provisions are severable so that if any provision is found invalid, other provisions remain in effect.