Sales Tax

Sales Tax

Sales tax refers to the amount of tax that is deducted from the sale of merchandise such as vehicles and other items. Use tax, on the other hand, refers to the amount of tax deducted on storage, use or consumption of goods that have been purchased from retailers whose transactions were not subject to sales tax. In California, the use tax may apply to items that are shipped from other states such as telephone and internet. Retailers engaging in business are responsible for paying sales tax after registering with the tax department. Service businesses are considered to be qualified purchaser and hence should pay use tax after registering with the tax department.

The CDTFA refers to the California Department of Tax and Fee Administration, whose primary responsibility is to collect revenue to support essential public services. California’s base tax rate is 7.25%. The tax rate for my city San Diego is 7.750%. Chula Vista is a city in San Diego which has the highest sales and use tax rate of 8.750% which is because of the higher district tax. The states that do not levy a sales tax include Alaska, Delaware, Montana, New Hampshire, and Oregon.