Banner - Finance - Collection of Sales and Tax Required From California Customers
I would like to know what is required if my unit has sold tangible personal property to customers in California.
If you have sold tangible personal property to customers in California since March 9, 2009, the following tax information, reporting requirements, and necessary actions apply to you.
- As of April 1, 2010, all units must charge and collect sales and use tax (city and county) on sales of tangible personal property to customers in California. Applicable tax rates are provided in California City and County Sales and Use Tax Rates Publication 71: Tax Rate Publication.
- Units must report and submit monthly sales and us e tax collection reports to University Accounting Services to assist in the timely and accurate preparation and filing of tax returns and submission of tax due to the State of California. An Excel format for the monthly report (Sales Tax Form - California) is available from Accounting and Financial Reporting at: Sales Tax Form.
- Units must compile a list of all sales made to California customers from March 9, 2009 to March 31, 2010 in order for the University to report those sales. This information must be provided to University Accounting by May 5, 2010. Units must use the same Sales Tax Form - California mentioned above. Please note that in certain circumstances additional tax may be owed due to sales to California customers that occurred between March 9, 2009 and March 30, 2010.
Applicability to the University
- On March 9, 2009, the University opened an office in San Francisco, creating a physical presence in California. Therefore, the University is required to abide by all applicable California laws, including the collection of sales and use tax from sales of tangible personal property to its California customers, reporting those sales, and remitting the tax to the State of California.
- California law requires businesses that sell tangible personal property and have a physical presence in the State of California to register and obtain a seller's permit. These requirements apply even if the sales are not made from the California location (for example, internet or catalog sales to California customers). Tangible personal property includes items such as books, printers, laptops, cosmetics, logo merchandise, jewelry, and clothing.
University Tax - 217-244-8359
University Accounting Services - 217-333-9138