What is the California % for charging taxes? And what are the benefits of charging taxes?
If a person from another state buys something from me do they still have to pay the taxes that I charge?
Thanks I'm new to the business word...........
2007-03-30 02:39:56 · 6 answers · asked by Emeralds Diamond Store 1 in Business & Finance ➔ Taxes ➔ United States
There's no financial benefit to you to charge sales tax - you don't get to keep it, you have to forward it to the state, along with paperwork. And you have to get a tax number from them first to allow you to collect it and forward it to them.
The benefit to you, assuming that you follow all the state rules, is that you get to avoid fines and stay out of jail. If you're in business selling items in a state that has a sales tax, then you are REQUIRED to collect the sales tax, and forward it to the state with proper reporting, on a schedule set by the state. Contact your state dept of revenue or check their website to find more info.
If you sell on ebay to someone in another state, you would not collect sales tax from them. If you had a retail store and someone physically came in and bought something in CA, then they'd pay sales tax no matter where they lived.
2007-03-30 03:40:08 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Typically, sales tax is only charged if the person buying the item lives within your state. The benefit is "technically," it's the law. And if you are selling and plan on putting this income on your tax return, charging sales tax will keep you from having to pay tax later. You are not responsbile for tax for sales outside of the state, but you still will have to pay income tax on it. The first poster's link has some great information for you. You'll have to file for a sales tax number with your state. But as for ebay, it's just a box you check when you list an item and put in the amount of tax you need to charge.
Good luck.
2007-03-30 09:50:21 · answer #2 · answered by tchrnmommy 4 · 1⤊ 0⤋
Are you running a business or just cleaning out the garage?
If you are in Califoirnia and are holding yourself out as a business and you sell tangible personal property delivered within California, you probably will need to get a Seller's Permit from The California Board of Equalization. Rummage around their website. There is some clear published guidance.
If you charge tax and do not remit them to the state, that is a crime in California, so do not go there.
If you are NOT engaged in business and are just cleaning out the house of old stuff, forget taxes.
2007-03-30 16:40:45 · answer #3 · answered by zudmelrose 4 · 0⤊ 0⤋
If you reside in CA and make a sale to a CA resident you must charge sales tax. There is an exception for the occasional sale of personal property (casual sales rule) but if you are in business you must collect and render sales taxes for any transactions within your state. The benefit is that you are complying with the law.
You'll have to register with the FTB to get a sales tax ID. Then you should start collecting and paying sales tax.
2007-03-30 09:59:12 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
There is absolutely no benefit to you for charging sales taxes, especially on internet sales.
The California sales tax % varies by county. Go to www.state.ca.us, and search for sales taxes to find the rates.
If you ship something via common carrier out of state, you do not charge that purchaser sales tax.
In short, I wouldn't get involved with sales tax on Ebay sales.
2007-03-30 09:45:27 · answer #5 · answered by Anonymous · 0⤊ 2⤋
I thought they do that already?
It would be illegal if they didn't.
2007-03-30 09:47:43 · answer #6 · answered by Anonymous · 0⤊ 2⤋