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Sales Tax Calculator and Its Varieties

California sales tax is imposed on all California retailers when retail sales of any tangible products or services are purchased within the state. Retailers in CA are required to obtain a seller’s permit and to report and pay sales tax to the Board of Equalization. A retailer is accountable  for collecting the sales tax calculator from the customers. Even with no taxable sale a retailer is liable to report and pay the tax due. The sales tax calculator is accounted as the highest in the nation at 8.25% and has some of the highest income tax rates in the country.

Sales Tax CalculatorThe sales tax calculator is currently 6.5%, but California adds a compulsory local rate of 1% that increases the total state sales and use tax to 7.5% and another additional temporary increase in the sales tax calculator, by 1%, making a total of 8.25% as a result of the 2008-2009 California budget crisis from the year of April 2009 to June 2011. California has been ranked as the third worst state for taxes by the Tax Foundation. Property in California is assessed at 100% of full cash value, whereas under Proposition 13, the maximum amount of tax on real estate is limited to 1% of the full cash value. California allows cities and counties to charge additional sales tax calculator, and depending on the locality, rates can be as high as 10.50%. Sales tax calculator is not imposed on food items and prescription drugs, you can find out even more.

Companies or businesses must register for sales and use tax for a seller’s permit depending on whether the activity is retail related or the company functions as a reseller. Registration is made through the California Board of Equalization. Sales tax calculator is accountable mostly for tangible personal property.

Zip2Tax showed us an increase in the sales tax calculator rate allowed the finances of the governing body to increase from 15% to 20% for higher tax payers. The Californians may have to pay up to a 33% tax combined federal and state tax on capital gains which is the highest if compared to the tax rates all over the world. Higher tax rate as such has a long-term negative impact on the economy.  Despite the high sales tax calculator it has the 4th highest Cost Of Living Index in the country.  Even with the highest tax rate, the quality of life and better public services in California are not up to the mark as it should be in term of the funds gained by the state.

CA Sales Tax, High and Stagnant

The basic type of tax paid to the government known as Sales tax is paid separately or inclusive with the price of a product brought inside the residential state of a consumer. Use Tax on the other hand is a tax paid on products that is brought from a non-residential state. This tax is directly imposed on the consumer of the product by the state of purchase itself. The purchase is usually made from a vendor who is not under the rule of a taxing authority of the residential state of the consumer. Use tax is a complementary tax paid by the consumer for an out of state product.

There are states  that  allow deductions for sales taxes paid to other states on the items purchased.  There may also be some items or transactions that are exempt from use tax.  Familiar exempt items are food and prescription medications.  Purchases made by government agencies and nonprofit organizations are usually exempt as well.Sales Tax Calculator

Use tax is a consumption tax paid by the consumer, if he happens to buy a tangible item from outside his own state from a retailer, who is not authorized to collect sales tax, and brings to his state for use, store or consumption. Use tax has the same rate as the sales tax.

The purchaser is expected to declare the items of purchase to the assessing state authority and remit the use tax. But more often than not, this does not happen. The unprecedented popularity of online purchases has made it difficult for the governments to have a control over this. They can neither monitor nor enforce the remittance of use tax.

The items exempted from use tax are the same as sales tax. If a charitable society or non-profitable organization purchases something from outside the jurisdiction of their own state, they are exempted from paying use tax.

The use tax is levied on individuals as well as businesses. When you buy something from another state or from someone who is not authorized to collect sales tax, you are expected to pay use tax. Buying through a news paper advertisement, Craig’s list or internet, you are liable pay this tax. You are expected to pay the use tax when you acquire some property, like furniture, with the real estate purchases.

The use tax, like sales tax is levied at the retail level. It is, again like the sales tax, calculated as a percentage of the retail price. The tax rate depends on the state, county, local authority, district etc. The state may exempt items like clothes from use tax, temporarily.But even then the local authority can levy tax on these items.

What Is Use Tax and Who Pays It?

Use tax is a tax imposed on both businesses and individuals.  It is basically a sales tax on purchases made outside a state of residence on taxable items that will be used, stored or consumed in the state of residence of the buyer and on which no tax was collected in the state of purchase.  Use tax is directly imposed on the consumer of the product by the state of purchase itself.  The use tax rate is the same as the resident’s local sales tax rate, which includes both state and local sales taxes.Sales Tax Calculator

Use tax can be accounted or paid with the income tax return for personal or small purchase. For large transactions that are likely to occur in business dealings are needed to file special sales and use tax return with the state’s tax authority. A use tax is supposed to protect in-state retailers against unfair competition from out-of-state sellers that aren’t required to collect tax. It is also supposed to ensure that all of a state’s residents help fund state and local programs and services, regardless of where they shop.  Use tax is also due on vehicles, off-road-vehicles, mobile homes, aircraft, snowmobiles, and watercraft purchased or transferred by an individual or business from anyone who is not a licensed dealer or a retailer.

Situations that require paying use tax in the U.S are when a purchase is made from a different state and is brought into the residential state for use or store, when an item is brought from a non authorized store or person to collect sales tax within a state, when an item is brought through the internet, mail, magazine, catalog or shopping networks,  when a product is purchased through the means of real estate and when a product is distributed among states for promotional or business purpose.

Use tax is also applicable on rooms or lodging furnished by hoteliers, motel operators, and other persons furnishing accommodations that are available to the public on the basis of a commercial and business enterprise.  Individuals, organizations and businesses must report and pay use tax directly to the department of revenue of the state of purchase by using a form for Use Tax Return.

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