CA Sales Tax on Print Sales and Wedding Services

[heather_p1]

<p>First, let me say that I will contact my tax guy tomorrow for more information. Since it's evening, I'm really anxious and looking for a quick answer to my question.<br>

<br /> I'm unsure what to charge my customer for sales tax on prints. We live in two different counties with different tax rates. Do I charge her MY rate or HERs?<br>

<br /> Also, I've been reading that everything wedding related should be taxed as well, including the service. Say my client chooses a package of mine that costs $3000, would they need to pay my county's 8.25% tax rate on top of that.<br>

<br /> Thank you!</p>

[wes_d1]

<p>Heather,<br>

It looks like you already have a pretty good grasp on it. The tax rate applies to the county that you are have your business located in. So if that county/state tax rate is 8.25% you will charge 8.25% on all sales and services.</p>

<p>If someone chooses your $3000.00 package they will also include sales tax of $247.50. Most counties do charge tax on sales and services - but again you would need to contact your tax rep.</p>

<p>Also, you don't have to charge a seperate sales tax rate you can actually figure tax into your prices as long as you tell people thats what you are doing. So if you wanted to charge $3000.00 total you could still bill 3000 and then back out the sales tax due to the state..</p>

[allenahale]

<p>Buyers are not obligated to pay the sales tax. The SELLER is obligated to pay the sales tax. Most sellers pass the cost of the sales tax along to the buyer so the perception is that the buyer pays the tax. The law is that the Seller is responsible for the payment of any required sales tax. It is up to the Seller, you, to determine where and how you obtain the funds to pay the tax.<br>

Many questions can be answered by refering to California Board of Equalization's website.</p>

[Jerry_]

<p>You can price your package:</p>

<p>$2,751.35 [+ or -]</p>

<p> $248.65 sales tax [+ or -]</p>

<p>$3,000.00 for your customer to pay,</p>

<p>or as noted above, you can add the sales tax to the $3,000.00 amount.</p>

<p> </p>

[charleswood]

<p>From the CA SBE site: <a href="http://www.boe.ca.gov/pdf/pub68.pdf">http://www.boe.ca.gov/pdf/pub68.pdf</a> .</p>

<p>Your county rate applies unless you deliver to your client by common carrier (UPS, etc.), in which case it's their county's rate. That's similar to the rule where an out of state sale isn't taxed when shipped out of state by common carrier, though if the out of state customer picks the product up themselves it is subject to CA sales tax. Your delivery to the client is taxable to your county since you aren't a common carrier. </p>

<p>An interesting rule is where your delivery of an intangible, that is, an electronic file without any CD copy to the customer, is not subject to CA sales tax. It sounds like a wedding client wanting high res image files later (an extra) should accept electronic delivery (no CD) to have California sales and use tax not apply.</p>

[albert_richardson1]

<p>California Sales Tax is based on the CA city or county where the customer actually takes possession of the goods purchased. If you give her the package at your place charge your local rate. If you deliver or ship the package to her place then she pays her local rate.</p>

[albert_richardson1]

<p>Read <a href="http://www.boe.ca.gov/pdf/pub68.pdf">http://www.boe.ca.gov/pdf/pub68.pdf</a> This is the California Board of Equalization brochure that explains how photography goods and services are taxed.</p>

[charleswood]

<p>I was wrong as to district tax. See <a href="http://www.boe.ca.gov/pdf/pub44.pdf">http://www.boe.ca.gov/pdf/pub44.pdf</a> . Common carrier deliveries into another district: true, the seller isn't responsible to collect district tax and the buyer is responsible to report and pay district tax as a use tax. But if you personally deliver into another district you are considered being engaged in business in that district and are responsible to collect that district's tax even on common carrier deliveries into that district. ugh</p>

[kelly_flanigan1]

<p>Certain cultures and work groups have it in their DNA not to pay sales tax.</p>

<p>If they give you some lame "tax number" ; that does not fly with the California Tax guys when you are audited. Basically you screwed up by not charging sales taxes; 3 years later you get to pay they tax; plus penality; plus interest on both. Figure double the tax; ie 8.5 percent becomes 17 percenet when you are caught. It is an urban legend that having a "tax number" allows folks to skirt paying taxes. The lay public will try over and over to get you to hold the bag. Thus 3 years from now that sales tax of $247.50 becomes your 1/2 grand nightmare; your client is long gone.</p>

<p>If you do not fork up the 1/2 grand the tax guys can yank it right out of your checking accounts.</p>

<p>Unless they are reselling; or have some legitimate charity that is registered; you will get holding the bag.</p>

<p>I mention all this because folks will give you bogus tax numbers; or say it is for resale when it is not. Thus with some folks; it is almost better to give them a total with tax price to round figure; ie 3250 so they do wear you down with "I do not pay sales tax" gambit/dogma. Some will send you a check for 3000; when the total is 3247.50. I have seen this done for several decades in my California business.<br>

I disagree with Allens statement of "Buyers are not obligated to pay the sales tax. "<br>

Here I HATE folks who think they that they are so damn special they do not have to pay sales tax and I do on everything I buy in California. If you do not charge tax on a sale to some person; YOU get holding the bag when audited. Buyers of goods are suppose to pay sales taxes in California; whether they feel they have to or not. This really ticks off certian cultu</p>

<p>res and some industry groups; each time they buy something they will say they do not have to pay sale tax. If you cave in to this BS you are now holding the bag. Thye will give you their dogs license number; car tag number; contacting license. They will say they are not a Citizen of California; or are retired; or over 65; are vets; are in the service or work for the Government; or give you their boat trailer number.There is NO end to the stories folks will try.</p>

<p>When you get audited; the auditor will disagree with Allens statement; thus you failed to collect tax on your sales. Thus all these bogus "no tax" folks are long gone; then The tax guys send you a bill to be paid for all those taxes the buyers were obligated to pay; but you failed to collect. The audits are dry lot; they have heard it all. The state needs money. They have a real dim view on tax evasion. Figure 2 days lost with the audit; and a bill so big you might have to borrow to pay for</p>

[kelly_flanigan1]

<p>Certain cultures and work groups have it in their DNA not to pay sales tax.</p>

<p>If they give you some lame "tax number" ; that does not fly with the California Tax guys when you are audited. Basically you screwed up by not charging sales taxes; 3 years later you get to pay they tax; plus penality; plus interest on both. Figure double the tax; ie 8.5 percent becomes 17 percenet when you are caught. It is an urban legend that having a "tax number" allows folks to skirt paying taxes. The lay public will try over and over to get you to hold the bag. Thus 3 years from now that sales tax of $247.50 becomes your 1/2 grand nightmare; your client is long gone.</p>

<p>If you do not fork up the 1/2 grand the tax guys can yank it right out of your checking accounts.</p>

<p>Unless they are reselling; or have some legitimate charity that is registered; you will get holding the bag.</p>

<p>I mention all this because folks will give you bogus tax numbers; or say it is for resale when it is not. Thus with some folks; it is almost better to give them a total with tax price to round figure; ie 3250 so they do wear you down with "I do not pay sales tax" gambit/dogma. Some will send you a check for 3000; when the total is 3247.50. I have seen this done for several decades in my California business.<br>

I disagree with Allens statement of "Buyers are not obligated to pay the sales tax. "<br>

Here I HATE folks who think they that they are so damn special they do not have to pay sales tax and I do on everything I buy in California. If you do not charge tax on a sale to some person; YOU get holding the bag when audited. Buyers of goods are suppose to pay sales taxes in California; whether they feel they have to or not. This really ticks off certian cultu</p>

<p>res and some industry groups; each time they buy something they will say they do not have to pay sale tax. If you cave in to this BS you are now holding the bag. Thye will give you their dogs license number; car tag number; contacting license. They will say they are not a Citizen of California; or are retired; or over 65; are vets; are in the service or work for the Government; or give you their boat trailer number.There is NO end to the stories folks will try.</p>

<p>When you get audited; the auditor will disagree with Allens statement; thus you failed to collect tax on your sales. Thus all these bogus "no tax" folks are long gone; then The tax guys send you a bill to be paid for all those taxes the buyers were obligated to pay; but you failed to collect. The audits are dry lot; they have heard it all. The state needs money. They have a real dim view on tax evasion. Figure 2 days lost with the audit; and a bill so big you might have to borrow to pay for</p>

[heather_p1]

<p>Thank you everyone, you've been SUPER helpful!</p>

[albert_richardson1]

<p>You always get a resale permit certificate from any customer who asks you to sell at your best commercial rate so they can sell the goods again. Do this with each requester before you consummate any actual transaction with him. This step documents their declaration to you that they are indeed a properly registered reseller, and will pay the necessary sales tax when they sell the goods again. Use your own CA Resale Permit number as a guide to see the format correct numbers have. The Ca BOE has a copy of the correct form on their official web site you can use. </p>

<p>You then document the fact that a transaction has been sold for resale by writing that wording on the customer's invoice along with the CA Resale Permit number you now have on file. This declares to anyone who might have an interest in the transaction at a later date that you sold the goods in the good faith that the reseller truly intended to resell the goods instead of unlawfully use them for some other personal purpose.</p>

<p>You must always document these sales to protect your belief that you acted in good faith with your customer. You cannot be responsible if he is, in fact, lying to you because you do not have to account for what happens to the goods once they leave your possession. They are no longer yours. (This comment does not apply to controlled substances, managed goods such as firearms, sales to minors and other protected groups, & etc.)</p>

<p>Always write line item descriptions on your invoices that help clarify which items are taxable and which ones are not. Make sure to include a line that shows the amount of tax due for the sale. Many of my transactions include both types of item. I like to organize my invoices so that everything falls into a simple sequence. Taxable items ... only one line next for the sales tax that applies ... continue in the same vein for items belonging to the transaction that get taxed an another jurisdiction ... then finally, nontaxable services and intangible items. Tax for multiple jurisdiction transactions can seem almost impossible to figure out if you mix up the line items.</p>

<p>Finally - How do you invoice a "Sales Tax on Me Sale?"</p>

<p>Calculate your Invoice in the normal way including the sales tax you would normally charge. Follow the sales tax line with a credit showing the amount of the tax so your customer can see that he does not have to pay the tax, and an auditor can see that you considered the tax and included it in your documentation. Account for the tax you have to pay the State in your bookkeeping to make sure you don't overlook it later.</p>

[allenahale]

<p>Yipes - Publication 68 - 51 pages of "Tips" for photographers regarding California taxes - is there any wonder why businesses flee California or that California is going bankrupt. All these rules and regulations are hardly conducive to starting or maintaining a small business. <br>

I don't miss California at all.</p>

[allenahale]

<p>To clarify my first response - this is from Clifornia Board of Equalization website - Frequently Asked Questions (I have added the Bold and Italic emphasis on last sentence )<br>

<strong>What is the difference between sales tax and use tax?</strong><br>

The California sales tax is imposed on all California retailers. It applies to all retail sales of tangible personal property in the state. Retailers making sales in the State of California are required to remit the sales tax to the Board of Equalization. Retailers are required to pay and report sales taxes to the Board of Equalization and they have the option of collecting sales tax reimbursement from their customers. Almost all retailers utilize this option. <em><strong>Whether or not a retailer collects the sales tax, the retailer is liable to remit the tax due.</strong></em></p>

[cre8tiveparadigm]

<p>Kelly Flanigan you contradict yourself when you say "I disagree with Allens statement of "Buyers are not obligated to pay the sales tax. " vs stating that "...unless they are reselling; or have some legitimate charity that is registered; you will get holding the bag."<br>

And since you note that you have had a business in California for at least two decades I think you know what Allen Hale clarifes with<br>

"<strong>What is the difference between sales tax and use tax?</strong><br /> The California sales tax is imposed on all California retailers. It applies to all retail sales of tangible personal property in the state. Retailers making sales in the State of California are required to remit the sales tax to the Board of Equalization. Retailers are required to pay and report sales taxes to the Board of Equalization and they have the option of collecting sales tax reimbursement from their customers. Almost all retailers utilize this option. <em><strong>Whether or not a retailer collects the sales tax, the retailer is liable to remit the tax due."</strong></em><br>

<br /> Buyers of goods are not supposed to pay sales tax as you claim, business retailers in California are charged with the responsibility of paying the state of California the tax rate per the county of sale on the goods they sell. It is as Allen points out in bold now cultural practice in most cases for the retailer to advertise goods with out the tax figured in the cost effectively passing that cost on to the consumer.<br>

<br />What I think is happening with the tax on photographic services is not being addressed here. It is a double taxation for the service provider in as much as the photographer will be taxed on income at the end of the year. Therefore that portion is being double taxed. I will note that I could be wrong here, but if the sales tax portion is deducted from business income and not from taxes owed after business expenses are calculated then a percentage of it is being double taxed. <br>

I am glad to find this thread tho since I am just starting up a business after years of being an employee in California and will need to know how to budget my expenses. I was not aware of the taxation on the service portion of income. <br>

Please keep in mind that any taxes you pay in California on purchasing equipment or services (printing) are deductible when preparing taxes at the end of the year. As noted above if you show a resale certificate when buying the "business" equipment you do not have to pay the sales tax at purchase but don't try to deduct the sales tax from your income then. You'll be in big trouble. </p>

<p> </p>

[kelly_flanigan1]

<p>To all RE<br /> <br /> James:" Buyers of goods are not supposed to pay sales tax as you claim, business retailers in California are charged with the responsibility of paying the state of California the tax rate per the county of sale on the goods they sell. "<br /> <br /><br />The confusion ( or wording issue) is we California retailers list a sales tax on goods.<br /> <br /><br /> YOU PAY us for the items PLUS the sales tax too.<br /> <br /><br /> Thus buyers *are* actually paying sale taxes; that is the extra you see on a 100 buck invoice.!:)</p>

<p>The confusion is the Buyer IS paying more on a 1000 dollar item; maybe 90 dollars in some Calif areas. The 90 dollars goes to the Terminator; it come out of the BUYERS wallet; no the retailers. The retailer is just a temp holder of the tax. We just forward it. <br /> <br /> <br /><br /> EXAMPLE #1 If I do 100 dollars worth of printing for Joes Pizza in Simi Valley for menu's; the California sale tax might be 8.5 percent. His bill is thus marked 100 for printing and 8.50 for California Sales tax. He is the end user on the food chain; he pays the tax. All I do is collect the extra 8.50 and send it to the Terminator.</p>

<p>EXAMPLE #2 If Joes Pizza in Simi Valley has his menus printed in Florida; the California sales USE tax might be 8.5 percent. His bill is thus marked 100 for printing and NONE for California Sales tax if the Florida printer did not collect it. Joes Pizzas is the end user on the food chain; he pays the tax by paying the USE sales tax; if a goodie two shoes upholding the letter of the tax law. If Joe is audited; the California tax man does not care the the item was bought out of state.</p>

<p>EXAMPLE #3 If I do 100 dollars worth of scanning and printing for Joe Honest Contractor of Hollywood his bill might be 200 dollars; and 17 dollars California sales tax. His bill is thus marked 200 for printing and 17 for California Sales tax. He is the end user on the food chain; he *pays the tax* of 17 dollars on the invoice too. I collect it too and forward the tax money.<br /> <br /><br /> The check from Joe Honest is for 217 dollars; if I deposit it Today; 17 dollars get yanked out and goes to Arnold whether I like if or not. Here it is automatically yanked out of the checking account. The accountant adds up all the sales taxes on invoices; it gets yanked out probably next month. <br /> <br /><br /> As a retailer that 17 dollars tax was not paid by me; it was from all those taxes on sales; by the folks who bought stuff from me. I am just the holder of the tax for awhile. All I am doing is forwarding it the the California coffers; ie Arnold. This sale tax is NOT out of my hide; it is from what I collected from others.<br /> <br /><br /> Your as a buyer are thus PAYING the tax. A retailer holds it; then forwards it to the tax guys.<br /> <br /></p>

<p>EXAMPLE #4 If I do 200 dollars worth of scanning and printing for Joe Slime Contractor of Slymar his bill might be 200 dollars; and 17 dollars California sales tax. His bill is thus marked 200 for printing and 17 for California Sales tax. He is the end user on the food chain; he *pays the tax* of 17 dollars on the invoice too.</p>

<p>If Joe Slime's stuff is to build houses; and I am stupid; I might accept what Albert calls a "resale permit certificate" ; and thus if I knuckle under and make the bill 200 dollars; Mr Joe Slime skirts the 17 dollar sales tax.<br /> <br /><br /> When I get audited; the crafty California auditors can balk at this. Was the printing and scanning really for resale; or is Mr Slime just an ahole and skirting the tax?<br /> <br /><br /> The auditors might not be able to fine Mr Slime 3 years later. His tax id number might be a rash of missapplied things. Thus I get caught in the mire/slime; thus the auditor has ME paying for the 17 dollars; plus penality per event; plus interest one both. Thus I get hit with a 30 to 35 dollar bil; if not paid promptly; it get yanked right out of your checking account. <br /> <br /><br /> Thus Alberts comment of :"You cannot be responsible if he is, in fact, lying to you because you do not have to account for what happens to the goods once they leave your possession. " <br /> does NOT work with an auditor. The whole group of contractors are broke now; a gambit is to use a tax number and get you to hold the bag.<br /> <br /><br /> Thus if you shoot some images for a Contractors daughters wedding; some will try to get you to drop the sale tax since they have a tax is number.<br /> <br /><br /> With these aholes just pad the bill more and make it even. Thus a 1200 dollar total includes tax; but you do not tell them this. You just carry it as a 1200/1.085 = 1105.99 sale plus 94.01 dollar tax. It is FAR better to pay his tax than skirt it and get raped in an tax audit.<br /> <br /><br /> *****Having been audited before; all those tax id numbers are total BS if they were not used propertly; and it is up to YOU to be vigilant.<br /> Having a tax id of a buyer helps; but it does not mean an auditor will accept it<br /> <br /><br /> As a retailer you ARE responsible to be vigilant about miss use of tax id numbers. When audited YOU are responsible if you are lax and do not charge tax properly.<br /> The auditors really do not care if you are an assuming or gullible type. <br /> <br /><br /> Buyers *are* obligated to pay the sales tax on invoices; if you are so stupid that you believe a wedding should be not taxed because Mr Slime says he has a contacting tax id; or a resale license for his Auto part stores inventory; you are dumb. The auditors will fry you; and you really have little chance of collecting from Mr Slime; he has moved and is Teflon man. He got you to be the patsy. Sometimes you can collect the tax from Mr Slime in 3 years; ie one out of 100 to 500 trys?.<br /> <br /><br /> ***The sales tax board monitors you reported totals; and the taxable amounts.,<br /> <br /><br /> *IF* you have a low ratio; you might be:<br /> <br /><br /> (1) selling a lot to the non tax sector; government<br /> <br /><br /> (2) selling a lot to resellers<br /> <br /><br /> (3) You might be selling a lot out of state<br /> <br /><br /> (4) you might be not collecting sales taxes because your weak backbone has you accepting a mess of bogus tax id's; or miss applied ones; or have folks using their dogs license!</p>

<p>A retailer is really the temporary holder of the sales tax.<br /> <br /><br /> A buyer has 17 dollars tax on an invoice; the bookkeeper carries this total. All I do is forward the money to the Terminator; I really do NOT pay the sales tax; the Buyer does. It comes out of their hides; I am just the middleman.<br /> <br /><br /> The hold time depends on your volume. Here one of my California corporation pays it each month. The bookkeeper- CPA-accountant does the May 2010 sales on June 1. I get a piece of paper or email about June 2 to 4 saying that X dollars will be yanked out of checking on June 12 to 16th. Sacramento get that sweep notice too; with total sales; out of state non taxable sales; re-sale sales; sales to the government etc.</p>

<p><br /> EXAMPLE #5 If I do 200 dollars worth of scanning and printing for Joe SLOWPAY of the tar pits his bill might be 200 dollars; and 17 dollars California sales tax. His bill is thus marked 200 for printing and 17 for California Sales tax. He is the end user on the food chain; he *pays the tax* of 17 dollars on the invoice too.<br /> <br /><br /> BUT this is an open account I did this tranaction in January 21 2010; the 17 dollar sales tax was paid to the tax chaps in Feburary; but Joe Slowpay still owes me 217 dollars</p>

<p> </p>

[kelly_flanigan1]

<p>James;</p>

<p>Sales taxes are not income.</p>

<p>The sales tax is paid *by the buyer* as part of an invoice. The buyer pays the retailer 108.5 dollars for a 100 dollar saw at Home Depot. That extra 8.50 is the sales tax. That 8.50 gets forwarded. You as a retailer are just forwarding it.</p>

<p>A big retailer like Home Depot might be sending this tax money each week or very few days; instead of monthly.</p>

<p>As a retailer one is really just forwarding this money; that again the BUYERS are paying.</p>

<p>That tax money HAS to be forwarded whether one is living or dying; it really has nothing to do with income.</p>

<p>Thus if you shoot 20,000 bucks worth of images with 1800 bucks worth of sales tax; that tax HAS to be paid on a timely basis; whether your cameras are all dead or your lights are all cut off and you have zero income and are eating beans. This money really does not belong to you; it is the states .</p>

<p>****Your statement of:</p>

<p>"Please keep in mind that any taxes you pay in California on purchasing equipment or services (printing) are deductible when preparing taxes at the end of the year."<br /> <br /><br /> is a VERY dangerous; even more so in a web thread.<br /> <br /><br /> Stuff for resale can be non taxed; but all your advertising; business cards; flyers; catalogs are normally taxed. Whether tools are taxed or not varies by state; the type of tool.<br /> <br /><br /> I got audited for not paying the California sales tax on camera gear eons ago. Thus beware before advocating tax evasion on a public forum.<br /> <br /><br /> All that stuff from NYC dealers really has to have the use /sales taxes paid.<br /> <br /><br /> The peanut gallery can advocate buying out of state to evade taxes; a business has more risk<br /> <br /><br /> In some states printers used to print stuff for resale are taxed; but at a way lower amount.<br /> <br /><br /> Sometimes too the High mucky mucks will wave a wand and allow a new industry to skip taxes if they move there and stay 10 years; then after 10 years they threaten to move to another state.<br /> <br /><br /> It is far better to use a CPA in ones state than deal with the web fairy tales</p>

<p>The general trend in most states is to tax everything.<br /> One' s tools are taxed in most states</p>

<p> </p>

[kelly_flanigan1]

<p>Allen's comment up the thread of</p>

<p>"Buyers are not obligated to pay the sales tax. The SELLER is obligated to pay the sales tax. Most sellers pass the cost of the sales tax along to the buyer so the perception is that the buyer pays the tax. The law is that the Seller is responsible for the payment of any required sales tax. It is up to the Seller, you, to determine where and how you obtain the funds to pay the tax."<br>

<br /><br>

Is interesting; since if I have an invoice of 200 dollars goods and 17 dollars tax; it sounds like a bit like Allen is mentioning that I as a retailer will knuckle under to Mr Slimes gambit of only wanting to pay 200 bucks.<br>

<br /><br>

Maybe it is a wording issue. If I make about nothing on that 200 dollar sale; I will not knuckle under and make the total to be 200; ie 184.33 goods and 15.57 tax; I just lost the entire profit on a razor thin sale. Here I really on the street would tell Mr Slime he is a tightwad; or tax evader.<br>

<br /><br>

Thus on an account sale to Mr Slime; he is LEGALLY responsible for paying the full 217 dollars. If he pays only 200 on the account; he WILL get another statement for 17 dollars; PLUS interest too. <br>

<br /><br>

Just because Mr Slime thinks he is so special is no reason to be a whuss and give him a tax free life.</p>

<p>Part of business is not being a whuss; you do no cave it to the Bully.<br>

<br /><br>

If think your are not obligated as a buyer to pay sales tax you are in for rude surprise; for folks will send your unpaid taxes to the collection agency; charge interest on it; close you account it the balance gets too big. <br>

<br /><br>

There really is no perception; the sale tax is a tax paid by buyers to retailers; who pass it along to the tax guys<br>

<br /><br>

Thus if a smart ass buyer really is so stupid to believe that "buyers are not obligated to pay taxes" ; you just play hardball. <br>

<br /><br>

Thus with a contractor you file a lien on their properties; so title cannot be transfered. You really want a monkey wrench in their gearbox. It really is a moral issue. You really do not care if Mr Slime's house gets foreclosed over that 17 dollars; or he spends on less day in Europe on Vacation</p>

<p>If you try this "buyers are not obligated to pay taxes" gambit on a credit card; you are in for a VERY RUDE surprise.<br>

<br /><br>

That 217 dollar invoice that you think is paid with 200 bucks with your check<br>

<br /><br>

becomes 17 dollar next month. if un paid<br>

<br /><br>

becomes 17 dollar plus 39 dollar late fee next month plus interest. <br>

<br /><br>

If you wait 6 months you owe them now about 300 to 400 bucks or more; all over that 17 dollars your special mind thinks you are not obligated to pay</p>

[mikael_karlsson]

<p>Very good and informative posts Kelly!<br /><br />One thing worth adding regarding Allen's post above about retailers being liable for sale tax if they don't collect it from the buyer - this is absolutely not unique to California. It's like that in most (if not all) states that have sale tax. if the retailer wouldn't be liable, what would stop the retailer from "forgetting" to collect the sale tax all the time?<br /><br />The wife works for the state department of revenue here in Nebraska. Her mantra to businesses is always "collect the sale tax [from the customer] or document why you didn't". meaning that those organizations etc that are exempt will have a document from the state showing their exempt statues. Either they give you a copy of that document or they pay the tax just like everyone else. <br /><br />As always with taxation issues, check with a local CPA!</p>