California Tax Rates

[taliesin]

If you collect too much in sales tax, you have to return it

I'm currently going through the process of becoming legal in the State of California, and THIS is only partially true. If you overcollect on taxes, you must either give the overcharged amount to the State, or return it to the customer. Either is an option, according to BOE's website, which I just checked yesterday.

It looks like there's a lot of misinformation going around about California sales tax. I, for one, will be asking the BOE, and while I'm happy to post what I find, I recommend you call them yourself. Get a first and last name of whoever you speak with, and keep this information with your taxes. :)

[Website Rob]

This information is very helpful - We set our taxes for 8.25 %, but are in Southern Cal.

Just today, a Client in San Fransisco told me his Accountant stated Local Tax was 8.50%. That is what will be charged within his Store.

Also, I noticed Tax was being collected on the Product Price "and" Shipping Cost.
Is that normal in CA or the USA itself? (I'm from Canada and we do things differently. )

[gjh42]

That varies by state. New York requires tax to be collected on shipping as well as products. A few states don't even have sales taxes. (They get their money in other ways.)

[Boogy]

Just today, a Client in San Fransisco told me his Accountant stated Local Tax was 8.50%. That is what will be charged within his Store.

Also, I noticed Tax was being collected on the Product Price "and" Shipping Cost.
Is that normal in CA or the USA itself? (I'm from Canada and we do things differently. )

As far as CA, you only need to collect tax on the product price if.....(1) you use a common carrier (USPS, UPS, etc.) AND (2) the invoice clearly shows a different entry for S&H. If your invoice does not clearly state that $x.xx is for S&H, then you need to collect on the total price.