When it comes to running a business in Clovis, California, it’s essential to understand the sales tax system. Sales tax is a tax on retail sales of tangible personal property and certain services. The tax is collected by the seller and remitted to the state of California. In this article, we’ll discuss everything you need to know about Clovis CA sales tax.
What is the Sales Tax Rate in Clovis, CA?
The sales tax rate in Clovis, CA, is currently 8.975%. This rate includes a state sales tax of 7.25%, a Fresno County sales tax of 0.25%, and a Clovis city sales tax of 1.5%. It’s important to note that some areas within Clovis may have a higher sales tax rate due to additional district taxes.
When is Sales Tax Due in Clovis, CA?
Sales tax in Clovis, CA, is due on the last day of the month following the close of the reporting period. For example, sales made in January are due on February 28th. If the due date falls on a weekend or holiday, the due date is moved to the next business day.
Who is Responsible for Collecting and Remitting Sales Tax in Clovis, CA?
In Clovis, CA, sellers are responsible for collecting and remitting sales tax to the state. This includes brick-and-mortar stores, online retailers, and anyone who sells tangible personal property or certain services in Clovis. It’s important to note that if a seller fails to collect and remit sales tax, they may be subject to penalties and interest charges.
What Items are Subject to Sales Tax in Clovis, CA?
In Clovis, CA, most tangible personal property is subject to sales tax. This includes items such as clothing, furniture, electronics, and appliances. However, certain items are exempt from sales tax, such as food products for human consumption, prescription drugs, and some medical devices.
How to Register for a Sales Tax Permit in Clovis, CA?
If you plan on selling tangible personal property or certain services in Clovis, CA, you’ll need to register for a sales tax permit with the California Department of Tax and Fee Administration (CDTFA). You can register online or by mail. Once you receive your permit, you’ll need to prominently display it at your place of business.
What Happens if You Don’t Register for a Sales Tax Permit in Clovis, CA?
If you fail to register for a sales tax permit in Clovis, CA, you may be subject to penalties and interest charges. The CDTFA may also take legal action against you to collect the unpaid tax.
How to Calculate Sales Tax in Clovis, CA?
To calculate sales tax in Clovis, CA, you’ll need to know the sales tax rate and the total amount of the sale. You can use a sales tax calculator or simply multiply the total amount of the sale by the sales tax rate. For example, if the total sale is $100 and the sales tax rate is 8.975%, the sales tax would be $8.98.
What is Use Tax in Clovis, CA?
Use tax is a tax on the storage, use, or other consumption of tangible personal property purchased for use in California. If you purchase tangible personal property for use in California and the seller doesn’t collect sales tax, you may owe use tax. Use tax is generally due on your California income tax return.
What are District Taxes in Clovis, CA?
In addition to the state, county, and city sales tax rates, some areas within Clovis may have additional district taxes. District taxes are specific taxes for certain areas or purposes, such as transportation or education. It’s important to check with the CDTFA to see if your business is located in an area with additional district taxes.
Conclusion
Understanding the basics of Clovis CA sales tax is essential for any business operating in the area. By knowing the sales tax rate, due dates, and what items are subject to sales tax, you can ensure that you’re collecting and remitting the correct amount of tax. If you have any questions or need assistance with sales tax, be sure to consult with a tax professional.
