Sales-tax-issue

The issue of sales tax has become a hot topic among many "brick and mortar" retailers, as many of us who match prices with online "e-stores" are often asked by customers to waive local or state sales tax.  Without hollering too loudly from our soapbox, We hope customers will consider two points before making that "sales tax free" internet purchase. 
--First, whether you buy from a local dealer or an online dealer, you are legally obligated to pay "Sales and Use Tax" on your purchase.  All retail operations doing business in California are required to collect this tax for the state government.  While some larger internet retailers have started collecting and paying sales tax for sales to California residents, most still do not.  The California State Board of Equalization spells it out like this:
"Many individuals and businesses in California buy items from out-of-state businesses that do not collect California tax on their sales.  If you make such a purchase and then use, give away, store, or otherwise consume the item in this state, you may owe California use tax.  This is true whether you order over the Internet, by telephone or by mail.  The use tax rate for a given California location is the same as the sales tax rate there."
"Generally, if sales tax would apply when you buy a particular item in California, use tax applies when you make a similar purchase from a business outside the state."
 
--Second, as a member of a community, your sales tax dollars are one of the most important sources of funding for city services.  Davis Downtown provided us with the following figures.
"For every $2,500.00 spent in Davis, the city receives tax funds that could pay for:"
  • One hour of a firefighter's time
  • Maintenance of a city pool for one hour
  • Maintenance of one acre of park for a day
  • One hour of a police officer's time
For more information about the California Sales and Use Tax, or to pay your Sales and Use Tax online, visit:
http://www.boe.ca.gov/sutax/sutprograms.htm
For more information about the Davis Downtown Business Association, visit:
http://www.davisdowntown.com/