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Subject:
california sales / use tax
Category: Business and Money > Small Businesses Asked by: ccat-ga List Price: $15.00 |
Posted:
21 Jun 2004 10:26 PDT
Expires: 21 Jul 2004 10:26 PDT Question ID: 364068 |
If I purchase plants wholesale but pay sales tax on that amount, then I place the plants in a customer's place of business, and maintain those plants for a fee do I owe any additonal tax? ( I still own the plants, and when I am done with the maintenance contract with my customer, the plants come back to me.) |
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There is no answer at this time. |
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Subject:
Re: california sales / use tax
From: corwin02-ga on 21 Jun 2004 12:28 PDT |
As a seller, you must collect, report, and pay district sales tax (called a transaction tax) or use tax on your taxable sales and leases if you: - Have a business location or are engaged in business within the district; (a)- Lease, store, or consume tangible personal property in the district; or - Sell or lease vehicles, undocumented vessels, or aircraft that will be registered in the district. You are engaged in business in a district if you are a retailer who: - Maintains, occupies, or uses any type of office, sales room, warehouse,or other place of business in the district, even if it is used temporarily, indirectly, or through an agent; or - Has any kind of representative operating in the district for the purpose of making sales, making deliveries, or taking orders; or (b)-Receives rental income from leases or tangible personal property located in the district. Point a and point b seem to be the most relevant to your situation (plants are tangible property) you can read up on it on these pages http://www.boe.ca.gov/sutax/faqpurch.htm search key used : california sales tax Note : I am NOT a google reseacher and I am NOT in any way or form a Tax advisor |
Subject:
Re: california sales / use tax
From: respree-ga on 22 Jun 2004 00:22 PDT |
I'm not a tax professional. I do not think you should be paying a sales or use tax based on the wholesale amount when you purchase it. You should be paying a sales tax on the retail amount when you sell it. I don't think you owe a sales/use tax on your maintenance income. Sales/use tax pertains to tangigle property. I would just call the California State Board of Equalization for verification, which they will happily answer for free. |
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