Presence at Conventions Establishes Nexus
Sellers collect tax exemption certificates from customers with exempt status. Tax-exempt entities receive determination letters from the Franchise Tax Board. Businesses making exempt purchases can use resale certificates. Exemption applications determine status. Sales tax applies to personal property sold for use in California.
What is Exempt from California Sales Tax?
California’s sales tax rates for commonly exempted items are as follows:
- Non-Prescription Drugs: 7.5%
- Medical devices such as prosthetics
- Certain groceries, hot beverages, farm items, and alternative-energy devices
Exemptions to the California sales tax will vary by state.
How to Qualify for Tax Exemption in California
There are two ways to get tax-exempt status in California:
- Exemption Application (Form 3500): Determine your exemption type, complete, print, and mail your application.
- Submission of Exemption Request (Form 3500A)
Sales Tax Exemption Certificate in California
A sales tax exemption certificate is a form certifying that you meet the qualifications for making sales-tax-free purchases. California provides a specific form for tax-exempt purchases of certain items like farm equipment.
Who Qualifies for Property Tax Exemption in California
Seniors, age 55 and older, or those severely disabled must meet specific requirements to qualify for property tax exemption. An application must be filed with the County Assessor to transfer the taxable value.
California Nonprofit Tax Exemption
Harbor Compliance can assist in applying for and obtaining nonprofit tax exemptions in every state, including California.