California Sales Tax - New Thread 2010

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artisanwoodcrafting says:
the link says you charge people in your district, the state and district rate, and everyone else just the state rate.
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I talked to the BOE yesterday to see if I was understanding the application of CA district taxes correctly, and they confirmed what the link Artisan is quoting says. The district tax only applies to sales shipped to your district. For everywhere else in CA, you charge the current state rate, which is 8.25%. I made it very clear that I'm an online seller, not B&M. Give them a call, it was easy to get through and I have found them to be helpful every time I've had a question.

Posted at 3:44 pm Aug 26, 2010 EDT

RedBessBonney
RedBessBonney says:
I live in CA and when I went to the BOE to get my sellers permit, I was told you charge the tax where your sale is made. If I do a show in OC even though I'm in LA county, I charge the OC rate. If I make a sale on my home computer, I pay the LA county rate. Not one time has anyone mentioned district taxes or delivered sales.


doing a show is different than delivered sales. and if you are registered in another district, because you do shows there, then you also have to collect the district taxes for the etsy sales shipped to that district too. as then you are b"engaged in business" in that district

Posted at 3:44 pm Aug 26, 2010 EDT

It seems crazy to have to enter a different tax rate for every district in CA. I hear you all are saying that is the way to do this correctly but, man!

Posted at 3:47 pm Aug 26, 2010 EDT

Loftymornings
Loftymornings says:
It seems crazy to have to enter a different tax rate for every district in CA. I hear you all are saying that is the way to do this correctly but, man!


no, you only have to charge district taxes to customers in the districts where you are "engaged in business" , all other districts you only have to collect the state rate

Posted at 3:49 pm Aug 26, 2010 EDT

mimibuggy says

I also called the BOE when I did my taxes and was told to charge the statewide rate for sales outside my district. My district rate is higher, so I only charge that with sales within my district.

Posted at 3:49 pm Aug 26, 2010 EDT

From this BOE publication:
www.boe.ca.gov/pdf/pub105.pdf

Courtesy collection of district use tax:
Generally, if you are not engaged in business in a special tax district and you ship by common carrier into the district, your customer is liable for the district use tax. As a courtesy to your customer, you may choose to collect the district use tax from them. If you do, it should be shown on the customer’s invoice and you must report it on Schedule A of your return and pay it to us.

Posted at 3:51 pm Aug 26, 2010 EDT

StormOne says

marking...super confusing...

Posted at 3:52 pm Aug 26, 2010 EDT

It's really not that complicated. I've been paying sale tax for years and all I've ever paid was my local sales tax rate.

Posted at 3:53 pm Aug 26, 2010 EDT

Loftymornings says:
It seems crazy to have to enter a different tax rate for every district in CA. I hear you all are saying that is the way to do this correctly but, man!

*****

You do NOT have to do this. Maybe some businesses do I don't know but I do know you do NOT.

Posted at 3:55 pm Aug 26, 2010 EDT

DimmalimmHome says:
ByRoDesigns says:

I am in so cal as well and I dont know. I will have to ask my accountant for advice.

I wish Etsy would STOP fixing things that dont need fixing!!

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Uhhh... Cant say I agree with you there. When Paypal adds the tax and not etsy, the customer doesnt see the tax added until they go to checkout. Which is really not good. Personally Im glad that Etsy is finally taking care of this.

......

Every time Etsy changes anything a whole bunch of people scream bloody murder in the forum. I dont know about you guys but since I am selling all over the country my CA taxes are very small. If I have to make up for the loss out of my pocket then so be it.
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Not one customer in So Cal has ever complained about seeing a tax on their paypal invoice when they bought something from me.

This isnt the only online venue I have, I have a regualr website which uses paypal checkout. I've been doing this a long time and taxes have never been an issue. I set it up in paypal, make adjustments when taxes go up for my state or county. This is my business and livlyhood, I dont want to "make up for the loss out of my pocket." I stand by my first post. It didn't need to be fixed.... my opinion!

Posted at 3:56 pm Aug 26, 2010 EDT

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