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I was wondering if anyone knows anything about the California Use Tax (or any other state, it's probably similar).
This is what I know so far:
"If a student purchases their equipment through a distributor that is not collecting California sales tax, the student is legally obligated to file a California Use Tax for their purchase. This is very important as the State of California will request receipts for items purchased when conducting an audit of your practice. If your receipt does not include sales tax, the state will request your California Use Tax information. If this is not provided, then back taxes and penalties will apply.
If you normally reside in a state other than California and are audited by your home state, payment of the California Sales Tax on your equipment will satisfy your home state audit. The state must verify that some Sales tax was paid on the equipment."
I was looking up info on the CA Use Tax and found the following two helpful sites:
California Use Tax Information: http://www.boe.ca.gov/ads/news06.htm
-Has a Use Tax FAQ
-Has Use Tax Return form to easily report your tax (you can also just report it on your California income tax return)
-Lists Use Taxes for different cities and counties in CA (Berkeley is 8.75%)
Do You Owe Use Tax?: http://www.ftb.ca.gov/current/usetax.shtml
Now my questions are,
1) If you buy a [used or new] piece of equipment from someone (in CA or someone from another state),
a. How would the CA Use Tax apply to you?
b. Would you calculate it based on the price you bought it for, or the price the other person bought it for?
c. What if they already paid the CA Use Tax on it? How would this transfer to you?
d. Would you want to get THEIR receipt also, from when they purchased it, so it would prove that the CA Use Tax has already been paid on it?
2) If we purchase equipment (lenses, BIO, diag kit) from another state that doesn't charge sales tax, what definitely needs to be reported for Use Tax? Like, I'm sure the BIO and diagnostic kit must be reported...
3) How long do you have to pay your Use Tax? 1 month, 1 year...?
And just out of curiosity, which distributor do other schools purchase their equipment from? UCBSO purchases from Pioneer International, which has good prices, is payable by credit card, and has free shipping. I also know of Star Ophthalmic.
This is what I know so far:
"If a student purchases their equipment through a distributor that is not collecting California sales tax, the student is legally obligated to file a California Use Tax for their purchase. This is very important as the State of California will request receipts for items purchased when conducting an audit of your practice. If your receipt does not include sales tax, the state will request your California Use Tax information. If this is not provided, then back taxes and penalties will apply.
If you normally reside in a state other than California and are audited by your home state, payment of the California Sales Tax on your equipment will satisfy your home state audit. The state must verify that some Sales tax was paid on the equipment."
I was looking up info on the CA Use Tax and found the following two helpful sites:
California Use Tax Information: http://www.boe.ca.gov/ads/news06.htm
-Has a Use Tax FAQ
-Has Use Tax Return form to easily report your tax (you can also just report it on your California income tax return)
-Lists Use Taxes for different cities and counties in CA (Berkeley is 8.75%)
Do You Owe Use Tax?: http://www.ftb.ca.gov/current/usetax.shtml
Now my questions are,
1) If you buy a [used or new] piece of equipment from someone (in CA or someone from another state),
a. How would the CA Use Tax apply to you?
b. Would you calculate it based on the price you bought it for, or the price the other person bought it for?
c. What if they already paid the CA Use Tax on it? How would this transfer to you?
d. Would you want to get THEIR receipt also, from when they purchased it, so it would prove that the CA Use Tax has already been paid on it?
2) If we purchase equipment (lenses, BIO, diag kit) from another state that doesn't charge sales tax, what definitely needs to be reported for Use Tax? Like, I'm sure the BIO and diagnostic kit must be reported...
3) How long do you have to pay your Use Tax? 1 month, 1 year...?
And just out of curiosity, which distributor do other schools purchase their equipment from? UCBSO purchases from Pioneer International, which has good prices, is payable by credit card, and has free shipping. I also know of Star Ophthalmic.