SALT Report 1443 – Effective April 1, 2012 a voter-approved sales and use tax rate increase will take effect in five California cities. The cities of Fairfax, Palm Springs, Oakdale, and Vallejo will increase sales tax rates within their city limits. Mendocino County will raise the sales tax rate in its four incorporated cities, as well as any unincorporated areas in the county. The BOE has a chart on their website that illustrates the new rates and applicable codes.
Retailers will need to apply the new sales tax rate if they:
- Operate within the taxing area and have merchandise sold and delivered within the area
- Operate outside of the taxing area but are engaged in business within the area and sell merchandise for use in the area
- Are engaged in business in the area
A retailer is considered to be engaged in business in the area if they:
- Have a business location in the tax area
- Deliver into the tax area using their vehicles
- Have an agent or representative in the area to make sales, deliveries, installations, or take orders
- Sell autos, boats, or aircraft to customers that register them within the taxing area, or
- Collect tax on lease payments from property used in the taxing area
If a retailer is not required to collect or report sales tax, the purchaser may be responsible for reporting and remitting use tax to the BOE, depending on the circumstances of the sale or use of the property.
For Further Information: