posted on September 27, 2000 11:07:32 PM new
Hi all. I have been collecting sales tax and I just went back on the California Board of Equilization site to find the section that states that auctions must collect sales tax for the bid of the auctions. Trouble was, I couldn't find it.
Now someone just told me that the Gov. just refused to sign a bill that states that internet sales has to collect sales tax for Ca residents.
Does anyone have info (and links) to info on this.
Thanks,
Kelly
ps. If any sellers want to post the ol' "you have to pay sales tax only if you haven't already paid sales tax on the item" please refrain from leaving a post, because this is not true.
ps, my spelling bad and AW doesn't have a spell check. What can I say?
posted on September 27, 2000 11:22:51 PM new
Well, as I understand it.
If you are wholly based in California, for example a small seller like me.
Then If you mail to a california address you have to pay sales tax.
If you sell to an out of state address you don't.
AS for the other thing.
If I buy, for example, a Beanie Baby in a store for $5 and pay sales tax, and later sell it for $11 to a California resident, I owe the Franchise Tax Board (who are some really nice folks by the way)sales tax on $6 that was never taxed.
It makes bookkeeping interesting.
As I understand it bill the Govenor did not sign was for Companies not based in CA, but who had at least one Brick and Mortar presence. So if a New York Mail order company had a shipping center in CA, they would have had to pay sales tax on California sales as a California Company.
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Don't take life so serious, it ain't nohow permanent.
posted on September 27, 2000 11:34:51 PM new
That's correct as far as I know. Adding that if you send the item via email (as in an information guide or software program) or the customer downloads it from the Web, then there is no sales tax. The Equalization Board will send you the tax return form. Check your form (you did tell them you're a business, right?) to see what you're required to pay tax on. Basically, any goods sold in-state to a non-reseller. There may also be a local (county) tax.
posted on September 27, 2000 11:49:30 PM new
Oh man don't remind me about county taxes.
I sell at Flea Markets and Swap Meets in 4 or 5 different counties and I get to figure out the tax for each one.
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Don't take life so serious, it ain't nohow permanent.
posted on September 28, 2000 12:04:00 AM new
honestjontoys,
Do you have a link to the State board of Equalizaion for that? The last time I checked the site, I found the tax code for auctions and it clearly stated that tax is owed for the entire bid amount and not just on the part of the bid above the amount tax had been paid on. The section was very clear and specific, and gave an example where it stated something like "even if tax has already been paid, tax is due on the entire bid amount if bidder resides in California."
I only sell online and I hold a mail order business lic.
I even found a new part that states that the sales tax charge should also be on the handling fee but not the shipping charge. Geeze! I was charging the sales tax on the bid amount only.
I checked with a person that I know that has been selling online for a very long time, and is an ebay powerseller. They also confirmed that the sales tax should be on the entire bid, and not partial, but they couldn't find it in the books or on the site either.
posted on September 28, 2000 12:21:46 AM new
Well now that's technically true.
On line 1 of my sales tax form I do have to put all my gross sales.
But, on line 10(B)I can claim a deduction if I:
1. Paid CA sales tax when puchasing goods, and
2. Sold the property without first using it
From the instruction sheet, italics theirs
"Enter only the amount of the purchase before tax, if the property was sold to you for $15 + tax, you would claim only $15 as a deduction
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Don't take life so serious, it ain't nohow permanent.
posted on September 28, 2000 12:25:31 AM new
Frankly, the best thing you could do is call the Franchise Tax Board and ask, they are in the phone book. They have some really nice folks working there, at least in San Jose they do.
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Don't take life so serious, it ain't nohow permanent.
