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State Sales Tax on billed samples

Dwayne Bledsoe's Profile

We charge sales tax on samples since they are not for resale.
I am in need of the article in the tax code confirming this, particular in California.

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Dwayne,

Go to each state's Sales Tax Department and look up the code.

Steve Sheridan
Title: Associate
Company: Dean Lewis Associates
(Associate, Dean Lewis Associates) |

take a look at this page:
http://www.boe.ca.gov/lawguides/business/current/btlg/vol2/suta/280-0000-all.html#280-0900
It is the area of the tax code that deals with all different types of samples. If I'm reading it correctly, you may have to pay tax to the state as you are using the sample for marketing purposes. Please let me know if you have the same interpretation.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

The only caveat may be if the samples are shipped out of state, but I agree.

Boy, is CA piggy... When will the States go to a VAT system, then you wouldn't have these crazy State by State laws.

You pay VAT for everything you buy. You collect for everything that goes out. The net amount is either remitted by you or the state....

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