SALT Report 2623 – The California State Board of Equalization issued a reminder to all seller’s permit holders and consumers regarding a sales and use tax rate increase of 0.5% in the City of Atwater. The rate increase will bring the city’s total tax rate to 8%.
The notice advises that retailers must apply Atwater’s new tax rate if they:
- Operate outside of Atwater, but are engaged in business there and sell merchandise for use in the city,
- Sell autos, boats, or aircraft to customers who register them in Atwater, or
- Collect tax on lease payments from property used in the city
If you meet any of the following conditions, you are considered to be a retailer engaged in business in Atwater:
- Have an Atwater business location,
- Deliver into the city using their vehicles, or
- Have a representative in the city limits that makes sales, deliveries, installations, or takes orders
The BOE warns that if a retailer does not meet any of the criteria described above and they are not required to collect the additional sales tax, they are required to advise the purchaser that they may be responsible for reporting and remitting use tax to the BOE, depending on the circumstances of the sale or use of the property.
The sales tax rate increase takes effect on July 1, 2013.
For Further Information