Why are people so full of certitude theyse days?
In California, unless an online business has a physical store in its state, you're excluded from paying sales tax, just as the business is from charging it.
Dwdallam-
Unfortunately, your certitude is 100% wrong with regard to California sales tax. I can speak from the experience of someone who has been audited by them three times.
The article you linked to is not entirely correct. Sales tax varies from state to state, but what they are talking about re: physical presence in a state is whether the seller is required to collect sales tax. If they are out of state, they do not need to collect the tax. If you, as an end user/purchaser are in California, however, it is YOUR responsibility to send the state Board of Equalization the tax ON YOUR OWN. Not all companies do this, and a great many individuals do not, but if you are ever audited they will look at every single purchase receipt on your books and make you pay the tax retroactively. It is a calculated risk you take with large purchases, but if they catch you, you will owe the tax, penalty and interest.
FYI: California determines that the tax is due when the end user takes possession of the tangible goods in California. In the case of mail order, that happens on your doorstep, not where the goods were shipped from.
The other issue with California tax is that it is called "sales and use tax", so even if you use a resale card to buy something, if it is a tool that is used to create your end product then it is classified as a tool vs. a product that can be classified for resale. Even if you do resell it, you are liable for use tax and must pay the full tax because you are using it to create something else (like a photograph).
For years, California has been clamping down on the tax collection to get as much money as possible without having to pass unpopular new laws. As the APA or ASMP can attest, photographers have been a prime target of this. Twenty years ago, much of a photographer's expenses were allowed to be left untaxed. These days, very little fits that description.
Avoid the sales tax by purchasing out of state, as many do. Just know, that you are not safe from a potential audit unless you pay tax on all purchases, in state and out.
-Ron H.
