Tax for Los Angeles

[DieuxSoldat_04]

Hey Zenners,

I am a little confused about what the Tax Rate for my store should be. The location I will be shipping from is Yorba Linda, CA which is part of the L.A. County. According to this chart, California's tax rate is 7.25% and for every County, I am supposed to add a certain amount. For L.A. County though, it shows two .50% tax rates. So does this mean I make my tax 1.00% higher, 7.25% + .50% + .50% = 8.25%?

Any info appreciated, would help me calculate all my revenue before hand because I am not using an accountant.

Warm Regards,
Jason H.

[DieuxSoldat_04]

Forgot the Link to the chart.

[DWells]

Hey Zenners,

I am a little confused about what the Tax Rate for my store should be. The location I will be shipping from is Yorba Linda, CA which is part of the L.A. County. According to this chart, California's tax rate is 7.25% and for every County, I am supposed to add a certain amount. For L.A. County though, it shows two .50% tax rates. So does this mean I make my tax 1.00% higher, 7.25% + .50% + .50% = 8.25%?

Any info appreciated, would help me calculate all my revenue before hand because I am not using an accountant.

Warm Regards,
Jason H.

Based on this http://www.boe.ca.gov/cgi-bin/rates....ER=Y&LIST=CITY Yorba Linda, CA is actually part of Orange County, and would have a Tax Rate of 7.75%.

It is rather confusing figuring out the actual tax rate some times, so when all else fails I suggest visiting your local "Board of Equalization" you can find the office closest to you here http://www.boe.ca.gov/info/phone.htm. The personnel at your local office will be able to help you figure your proper tax rate based on where you do business. They should have given you such information when you applied for your "Resellers Permit" (they typically give you a green book-mark type of paper with a list of what your tax percentage is, as well as what each dollar amount would be taxed.)

Hope this helps, and best of luck with your website!

[DieuxSoldat_04]

Awesome. Thanks a lot. Then my next question would be, does KK Music Store have a valid reason to charge 8.25% Tax when it is located in Yorba Linda as well?

Thanks,
Jason H.

[DWells]

Awesome. Thanks a lot. Then my next question would be, does KK Music Store have a valid reason to charge 8.25% Tax when it is located in Yorba Linda as well?

Thanks,
Jason H.

That is actually a bit trickier of a question. As someone with a Resellers Permit you must charge sales tax based on the location in which you do business; meaning, anywhere your business is located (Warehouse, brick and mortar store or anywhere else you choose to sell from).

So, if KK Music has any warehouses, stores or shipping locations located in a zone that requires a 8.25% sales tax, that is what they would have to charge (when shipping to a location requiring 8.25% sales tax). It is also possible that the company is using a drop shipper, and the company is passing along what their drop shipper charges them in sales tax.

If you store, and ship your merchandise from Yorba Linda you can use the 7.75% sales tax rate. But when selling in LA County (you and your merchandise are physically in LA County) you will have to charge 8.25% sales tax.

For instance, my business is located in Shasta County California (sales office, warehouse, company headquarters, and I ship from within Shasta County). As such I am obligated to charge 7.25% sales tax for all sales made online and shipped to California. If I was to go to Los Angeles and sell any of my products, I would be required to charge 8.25% sales tax for all sales sold and or shipped from Los Angeles.

If you haven't already done so, I suggest reading through the packet given to you with your Resellers Permit (issued by the Board of Equalization) to help you understand the rules involved. If you don't have a Resellers Permit, you are not allowed to charge Sales Tax (because you have no way to pass it along to the state, which would be deemed Fraud), but you can pass along the tax you are charged from your supplier to your customers (if they (your supplier) charge sales tax within California); but it would be better to get your own Resellers Permit.

[DieuxSoldat_04]

Dude, are you an accountant? Lol. Your answer are spot on! Thanks for all the info.

[DWells]

Dude, are you an accountant? Lol. Your answer are spot on! Thanks for all the info.

No, I'm not an accountant; but I have a pretty good grasp of numbers (and have done some studying toward becoming a Certified Public Accountant... still have a lot to learn).

By The Way, I forgot to mention in my earlier post. If you own and/or operate a delivery vehicle that will be used to deliver to an area that has a higher sales tax rate you will have to pay the higher sales tax rate to the area you delivered to.

To avoid this, you can use a carrier like UPS, FedEx or even the USPS for shipping outside of Orange County... or you can just charge the 8.25% to your customers everywhere in California, and be sure to pass ALL of the collected sales tax on to the state of California.

[marcelo63]

No, I'm not an accountant; but I have a pretty good grasp of numbers (and have done some studying toward becoming a Certified Public Accountant... still have a lot to learn).

By The Way, I forgot to mention in my earlier post. If you own and/or operate a delivery vehicle that will be used to deliver to an area that has a higher sales tax rate you will have to pay the higher sales tax rate to the area you delivered to.

To avoid this, you can use a carrier like UPS, FedEx or even the USPS for shipping outside of Orange County... or you can just charge the 8.25% to your customers everywhere in California, and be sure to pass ALL of the collected sales tax on to the state of California.

OC is 7.75%
BUT Laguna Beach is different since 1 1/2 years ago
tax is based from where you do business from (Yorba Linda) where my daughter was born (Actually Placentia Linda Hospital)
Tax is based ONLY on the principal and NOt Shipping
But you can split charges and tax the portion of handling.
what ever you do with the tax, you are just the collector and each 3 month (quarter you need to render to the Board of Equalization, the One in Santa Ana)
So as stated before is you want to collect 20% Sales Tax Arnold will be Happy, due you need to pass that into them.
example.
I John "the lover" buy from you (he is located in New York to her friend in Fresno. Tax must be paid at your rate of 7,75% (altough he is in NY)
But if you do not have a CPA and you do not much volume in internet sales, remember to document everuthing including shipping records. BOE (Board of Equalization) May request those records. They suspect too much when more than 50% of the sales are Out of State. They may ask for records that you ship overseas or the other 49 states, against invoices.
whistle if you have any -> ?
Marcelo
Anaheim CA

[DieuxSoldat_04]

Ok, so, being that all items will be shipped FROM Yorba Linda to any 48 states of main land America, the Tax rate I can / should charge is 7.75% IF I use FedEx?

The last two replies confused me a little, sorry. If the answer is Yes, we are done, Lol.

Warm Regards,
Jason H.

[marcelo63]

Ok, so, being that all items will be shipped FROM Yorba Linda to any 48 states of main land America, the Tax rate I can / should charge is 7.75% IF I use FedEx?

The last two replies confused me a little, sorry. If the answer is Yes, we are done, Lol.

Warm Regards,
Jason H.

NO,
You only will charge what ever method you use ONLY when ship to California. Fresno San Diego, Madera, San Francisco, Orange, San Juan Capistrano, any City in California
the system will do that for you.
and yes the rate is 7.75%
You will not charge any tax outside CA.