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How much do I charge for Sales Tax if I'm doing business with all of California?
We distribute to all of California. When our clients don't have a resell number, what tax rate do we charge them? By their city sales tax rate? Or by our city sales tax rate? Or just California's base sales tax rate?
BOE tells me to just charge by our county rate, then I called, and someone else said charge by the highest rate in California... Help?
WE SHIP MOST PACKAGES TO THEM, HOWEVER THEY PAY FREIGHT. IS THAT EQUAL TO THEM PICKING UP? OR DO I STILL CHARGE THEIR COMMUNITY'S RATES?
5 Answers
- Anonymous10 years agoFavorite Answer
It's not just county rates. There are some cities within a county that charge higher rates. The sales tax rate for the state will be decreasing as of July 1st because the "temporary" increase expires, unless the voters are stupid and vote for another increase like Brown wants.
There is a state rate that you can charge and then residents will have to declare the difference on their state tax returns. BOE has all that info. They don't like this anymore than we do but that's the law.
Source(s): tax preparer / BOE are idiots - ?Lv 710 years ago
Sales & Use Tax
http://www.boe.ca.gov/info/taxoverview.htm
Retailers engaged in business in California must register with the BOE and pay the state's sales tax, which applies to all retail sales of goods and merchandise except those sales specifically exempted by law. The use tax generally applies to the storage, use, or other consumption in California of goods purchased from retailers in transactions not subject to the sales tax. Use tax may also apply to purchases shipped to a California consumer from another state, including purchases made by mail order, telephone, or Internet.
The sales and use tax rate in a specific California location has three parts: the state tax rate, the local tax rate, and any district tax rate that may be in effect.
State sales and use taxes provide revenue to the state's General Fund, to cities and counties through specific state fund allocations, and to other local jurisdictions.
http://www.boe.ca.gov/sutax/sutprograms.htm
Sales & Use Tax in California
The Sales and Use Tax Department is responsible for administering California's state, local, and district sales and use tax programs, which provide more than 80 percent of Board-collected revenues.
I Need To
Obtain a Seller's Permit
Verify a Permit
Find the Tax Rate
File a Return
Learn About Use Tax
http://www.boe.ca.gov/sutax/pam71.htm
California City & County Sales & Use Tax Rates
Quick Links
Tax Rates effective April 1, 2011
Tax Rates effective July 1, 2011
Hope that you find the above enclosed information useful. 06/25/2011
- A HunchLv 710 years ago
You charge by the sales tax in your area.
State base rate + any county rate in your area + any city rate in your area.
- troLv 710 years ago
Calif sales tax is 8.75 and when you file the sales tax return you have to keep track of the sales to those communities that have 9.25%, this is reported on your tax return--look at the tax return and see how the district taxes are alloted
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- StephenWeinsteinLv 710 years ago
If they come to you to pick up what you sell, you charge by the rate for where you are. If you ship to them, you charge by the rate for where they are.