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CALIFORNIA SALES TAX

  What Is Sales Tax?
A tax imposed on the resale of certain tangible items. Generally, sales tax is not imposed on intangibles such as ideas or concepts.

  Do I Have To Pay Sales Tax?
If you buy items at wholesale (no sales tax) and resell those items to the retail public you are required to charge a sales tax and pay that tax to the State Board of Equalization.

  What Is "Wholesale" And "Retail" Sales?
Wholesale refers to the sale of products to a business or individual that has the intention to resell it to the general public for a profit.

Retail refers to the selling of products to the general public that has the intention to consume or use the product for their own benefit and use.

  I Manufacture Products And Sell Them To Chain Stores. Should I Charge A Sales Tax?
No. If you are selling items wholesale to retailers you do not need to collect or pay a sales tax. However, the retailer must supply you with their resale number and this must be kept on file to legally sell to them without charging the sales tax.

  I Manufacture Products And Sell Them To The General Public At Swap Meets. Do I Need To Charge A Sales Tax?
Yes. This would be classified as retail sales and you are required to charge the sales tax and pay it to the State Board of Equalization.

  I Want To Buy Items From Wholesalers At A Discount And Sell Them To The General Public For A Profit. How Do I get set up?
Wholesalers will require a "Resale Number" from you. This can be obtained from the State Board of Equalization. Fill out the form to apply for a California Resale Number. Individuals/Partners | Corporations/LLC's

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  I Purchased Some Items at Wholesale but Used Them Myself Instead Of Reselling Them. Do I Have To Pay A Sales Tax?
Yes. You are required to pay sales tax on any items you buy at wholesale and use them for your own personal benefit.

  I Sell Food Items. Should I Be Charging Sales Tax?
In California there are specific laws and regulations regarding the food items that are to be charged a tax. Generally, food items are not taxable unless consumed on the premises where they were purchased. There are exceptions and it is recommended you get familiar with the specific laws and regulations.

  How Do I Report And Pay The Sales Tax To The State Board Of Equalization?
Once you have received your Resale Number the State Board of Equalization will determine the frequency you need to report and pay your sales tax. The frequency of reporting and paying will be based on the volume of your sales. Reporting can be weekly, monthly, quarterly, semiannually or annually. The State Board will mail you the required forms.

  Do I Have To Hire A Tax Preparer To fill Out the Form?
Although the forms can be completed by anyone, t is recommended that the Preparer be well versed in the laws and regulations of sales tax reporting.

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