California Tax Rates

[clydejones]

Try the ot_local_tax mod you can find it here
http://www.zen-cart.com/archived_con...s/order-total/

It was written with California in mind.

[charlieo]

Clyde:

I'm going to try it.

I just checked the California State Tax Page at:

http://www.boe.ca.gov/sutax/pam71.htm

It's a snakepit - it's different for almost every county. Anywhere from 7.25 to 8.50 in San Fran - and everything in between.

This could take a while - thanks for the module!!

Charlieo

[PortMan]

Sales tax is collected by the county the sale originated in. So, if your store is in S.Cal and you sell to N. Cal you still have to collect S. Cal tax rate. You should have to only set one Tax Zone "California" and set the rate to 8.25

[charlieo]

Ahhh - Portman - that is refreshing news!

Will implement one tax for her store!

Thanks,

Charlieo

[Kim]

Before implementing any tax advice, please consult your accountant or tax attorney.

[PortMan]

Before implementing any tax advice, please consult your accountant or tax attorney.

Agreed!
I have a call into the State Board of Equalization on this one and will post their response.

[gjh42]

In NY the requirement is to collect tax based on the customer's location (unless selling directly face-to-face). There are something like a hundred zones - one for every county and many small cities within rural counties, never mind NYC and surroundings.

Most small merchants I have seen or dealt with just use their own tax rate on mail orders - annoying when they're in NYC and want to collect 8.625% instead of my local 8%.... And the sales tax reporting form is four pages long so you can enter the amount of your sales in every zone in the state, for the state's fiscal year instead of the calendar year. =P

[cpk]

Will implement one tax for her store!

Charlieo, definitely check with BOE since I am also in CA and was told the same thing that gjh42 says they have to do for NY.

In CA we are supposed to collect tax based on the county/city tax rate of the customer's location. I was told this when I got my reseller's license but I would recommend that you check to be sure.

cpk

[PortMan]

Here is the response I received from the BOE:

The rate you charge depends on two factors. 1) where title to the goods passes to the buyer (usually this is the shipping destination) and 2) whether or not you are "engaged in business" in the area where the goods are shipped. If you are not engaged in business in the particular area where you are shipping, you are only REQUIRED to charge the statewide rate of 7.25%. If you charge everyone 7.75% you will be overcharging some customers, and possibly undercharging others.

You are never wrong to charge your customers THEIR sales tax rate.
Whether or not you are REQUIRED to charge their rate depends on the two
factors I mentioned in my answer to your first question. You might want to
download Publication 105, District Taxes and Delivered Sales, by clicking on
the link below.

http://www.boe.ca.gov/pdf/pub105.pdf


So, I think a "statewide rate of 7.25%" is ok, but check yourself to be sure.

[Paul Robinson]

Sales tax is collected by the county the sale originated in. So, if your store is in S.Cal and you sell to N. Cal you still have to collect S. Cal tax rate. You should have to only set one Tax Zone "California" and set the rate to 8.25

As the former holder of a California state sales tax permit this information is totally incorrect. The sales tax is based on the location where the goods are delivered. It's your rate if they pick up at your store. It's the rate of their county if you ship it to them. The sales tax reporting form has an entry for each county you sell to in order to report the correct amount for each county. (This presumes they have not changed the way the form is set up, I haven't been in california since 1988.) You can always overcharge by imposing the highest rate provided the state gets the money, they're not going to complain that they are getting too much (nor will they really know you're paying the wrong amount unless they audit you, and unless you're a politician or a large business you're unlikely to be audited. (The Franchise Tax Board, having auditors on staff, does auditing of politicians income and expense reports for proof they have disclosed everything instead of the Secretary of State having to do it.))