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Business Services Guide

Sales & Use Tax

What is Sales & Use Tax?

The California State Board of Equalization is responsible for administering the State's sales and use tax program. This department ensures that the proper amount of sales tax is paid on sales of merchandise. Use tax applies to the use, storage, or other consumption of those same kinds of items. Generally, sales tax applies when merchandise is acquired within California; alternatively, use tax applies when purchases are made from outside California.

California sales and use tax is a CLPCCD liability and must be paid either directly to the seller or directly to the State Board of Equalization.

Is CLPCCD Exempt From Paying Sales Tax?

No.

What Does This Mean to CLPCCD?

CLPCCD is obligated to pay sales tax on goods shipped within or from outside California. Typically, California vendors will include the sales tax on their invoices. Because cities within California have varying tax rates, an additional use tax may be applied to your invoice. This will ensure the correct tax is remitted to the state based on the tax rate associated with the city to where the item is being shipped, i.e. Dublin, Hayward, or Livermore.

For example, Hayward has a sales tax rate of 9.75%. Let's assume the vendor's place of business is Sacramento and the vendor ships to Hayward from Sacramento. If the vendor applies the Sacramento tax rate, which is 8.25%, an additional use tax rate of 1.5% will be added to the invoice by Accounts Payable professionals to ensure that, in the end, we pay 9.75% (Hayward's tax rate) on the goods. This additional use tax rate is charged to the account string indicated on the requisition. The District pays the 1.5% directly to the State Board of Equalization. Note that shipping charges are generally not taxable.

Sales and Use Tax Rates

Click here for current sales and use tax rates for the district.

Contact Information

Please contact Dori Campbell, CPA if you have questions regarding Sales & Use Tax. She can be reached at (925) 485-5282.