CA Tax

[Julian Banos]

I was just wondering if the cameras are going to be subject to California Sales Tax (state and local) if they are going to be used outside of state?
What about international sales?

[jbeale]

I have no affiliation with Red, this is just my opinion: normally, CA sales tax must be charged by CA vendors when the goods are shipped to an address within CA. If you are acquiring goods strictly for resale you can submit your reseller's permit, but AFAIK the vendor has a duty to disregard such documentation if they believe reselling that specific good is not in your normal line of business.

Here is the California States Sales and Use Tax FAQ: http://www.boe.ca.gov/sutax/faqusetax.htm

If you are engaged in commercial production, you may qualify for a reduced sales tax, for details see:
http://www.boe.ca.gov/pdf/reg1532.pdf

[Rob Powell]

We sell products in CA, and general rules of sales tax should apply. You pay sales tax if you are a business entity or individual in CA. Also, if you are out of state, but take possession of the item in CA. That means, if you plan to drive over from Nevada and pick up your RED, it will be subject to CA sales tax.

I've never personally purchased gear in CA, so I'm not sure what the rate will be. Our main office is in NC and we only pay a 1% tax on equipment, not the full tax rate. Not sure if CA has any similar provisions or programs for production entities.

RA Post

[donatello b]

"I was just wondering if the cameras are going to be subject to California Sales Tax (state and local) if they are going to be used outside of state?"

from what i remember ( and it's been a few years )

if you live in CA (or if the credit card you use has the monthly bill shipped to a CA address) you are subject to CA tax ...

"if they are going to be used outside of state?"

should i read into the above you live in CA but plan to use it outside of CA ?

if CA has a agreement with your state to collect your states sales tax then they could charge your state taxes ...

if you live out side of CA and you pick the camera up in CA you are subject to CA tax ( you might be able to apply for a refund after you leave ? )

i pretty sure the same apply's if you live outside the country - if you pick up the camera in CA you pay the tax and i believe you can apply for a refund when you leave ( be sure when you leave the country to get somebody in US customs to verify that you left the USA with the camera/equipment )... if the camera is shipped to your country there is no CA sales tax ...

also you might be careful if you live outside of CA & you don't pay your states sales tax ( you're suppose to ) ... when you file your state taxes and you take your equipment as a deduction - if you get audited by your state they just might notice you didn't pay sales tax if they question your deductions ... not that it happened to me when i bought a $$$$ item in oregon ( has no sales tax ) and 2 years later had to pay CA sales tax + penalty ....

[Kevin Halverson]

This might be of interest to purchasers that are subject to California sales tax.

http://www.boe.ca.gov/sutax/pdf/parttelecert.pdf

[Julian Banos]

Thanks for the quick answers. My situations is: Im planning on going to pick up the equipment myself and then bring it into Mexico. So I guess I would have to pay CA sales tax and then ask for a refund.
Once I went to Macys in SF and they exempt sales tax if you go upstairs to the offices and show them your passport, they fill out a very simple paper and your purchase is sales tax free during the time of your stay. Maybe those forms are not that hard to get.

[Rick Darge]

What if my business name and self are registered to CA but I have it mailed to my dad's house in Arizona? Would the feds come knocking down my door at some point?

[Kevin Halverson]

What if my business name and self are registered to CA but I have it mailed to my dad's house in Arizona? Would the feds come knocking down my door at some point?

Well, there is one way to find out...

[donatello b]

"business name and self are registered to CA "

not going to work ... and your bank is where ? you file your CA taxes using what address = you live in CA ....
now if it was sold to your father, he pays for it , and shipped to him ... then you have something ...

if you fill out the CA production exemption then you are only going to pay 2-3% tax - which may or may not be deductible ?? at end of year ...

[Rick Darge]

Not even worth it then. I plan to claim the Red as a deduction stretched out over the course of 5 years.. Plus, who am I kidding..when they call me to tell me the camera is done, I'm sitting in traffic and going to Orange County ~

[Johnny Friday]

Thanks for the quick answers. My situations is: Im planning on going to pick up the equipment myself and then bring it into Mexico. So I guess I would have to pay CA sales tax and then ask for a refund.
Once I went to Macys in SF and they exempt sales tax if you go upstairs to the offices and show them your passport, they fill out a very simple paper and your purchase is sales tax free during the time of your stay. Maybe those forms are not that hard to get.

Julian,
From what I know and have EXPERIENCED....buying most of my goods in the USA--75% CA....you have to a few options. You can use your RFC from HACIENDA in Mexico....take it to CA. and the CA. STATE BOARD OF EQUALIZATION and apply for a "Mexican Merchant Card"--which allows sales tax exemptions for Mexican merchants buying items in CA. and crossing the border--LOTS OF PAPERWORK---but if your normal line of business is not bringing goods across the border...then it's a LOAD of paperwork and you are then allowing the CA. STATE BOARD OF EQUALIZATION to enter your life--i don't recommend it.

OPTION 2: and the most reasonable for crossing to Mexico---and I suspect departing to other countries....you buy the camera and gear, then pay sales tax. THEN---GOOD OLE MEXICO AND ADUANA (Customs).
DECLARE your items to Mexican Customs and pay the MEXICAN importation fees/taxes etc....whatever those might be in your case.

***Then with that document, you can (possibly through RED)....fill out the appropriate tax refund paperwork to have RED refund you your tax that was charged. RED or any other vendor MUST HAVE PROOF of your items leaving the country and that countries customs showing ENTRY and whatever payments.....so that there is cause to give you your money back.

***It's all a HUGE batch of paperwork.....for us in Mexico---dealing with antiquated ADUANA. I do it regurally and in many cases will just prefer to have items shipped to me out of CA. to another state and then pick them up and therefore be exempt from CA. sales tax.

Good luck with Aduana!! AND you should consider declaring your items OTHERWISE if you don't have the ADUANA PEDEMIENTO....how will you prove to your insurance company you EVEN had the equipment---it will cause you much grief if you don't import the gear.

[John Godden]

"business name and self are registered to CA "

not going to work ... and your bank is where ? you file your CA taxes using what address = you live in CA ....
now if it was sold to your father, he pays for it , and shipped to him ... then you have something ...

if you fill out the CA production exemption then you are only going to pay 2-3% tax - which may or may not be deductible ?? at end of year ...

This is the smart, honest, and legal way of doing this transaction.

Don't try to beat the system folks.................. :clown2:

JohnG

[Julian Banos]

Julian,
From what I know and have EXPERIENCED....buying most of my goods in the USA--75% CA....you have to a few options. You can use your RFC from HACIENDA in Mexico....take it to CA. and the CA. STATE BOARD OF EQUALIZATION and apply for a "Mexican Merchant Card"--which allows sales tax exemptions for Mexican merchants buying items in CA. and crossing the border--LOTS OF PAPERWORK---but if your normal line of business is not bringing goods across the border...then it's a LOAD of paperwork and you are then allowing the CA. STATE BOARD OF EQUALIZATION to enter your life--i don't recommend it.

OPTION 2: and the most reasonable for crossing to Mexico---and I suspect departing to other countries....you buy the camera and gear, then pay sales tax. THEN---GOOD OLE MEXICO AND ADUANA (Customs).
DECLARE your items to Mexican Customs and pay the MEXICAN importation fees/taxes etc....whatever those might be in your case.

***Then with that document, you can (possibly through RED)....fill out the appropriate tax refund paperwork to have RED refund you your tax that was charged. RED or any other vendor MUST HAVE PROOF of your items leaving the country and that countries customs showing ENTRY and whatever payments.....so that there is cause to give you your money back.

***It's all a HUGE batch of paperwork.....for us in Mexico---dealing with antiquated ADUANA. I do it regurally and in many cases will just prefer to have items shipped to me out of CA. to another state and then pick them up and therefore be exempt from CA. sales tax.

Good luck with Aduana!! AND you should consider declaring your items OTHERWISE if you don't have the ADUANA PEDEMIENTO....how will you prove to your insurance company you EVEN had the equipment---it will cause you much grief if you don't import the gear.

Baja Productions:

Thank you for the information it makes a lot of sense. Unfortunately I have to deal with Hacienda, Aduanas and the State Board of Eq. on my life :angry03: and this is why I ask. I would never expect that someone knew about how to get gear into Mexico, but this forum is amazing.

You are absolutely right you have to get a Pedimento for the insurance. So at the end of the day I would be paying 15% IVA, hopefully no CA Sales Tax (6 to 8% depending on the county and city). Plus anything else? Maybe import taxes? Do you recommend that I bring the equipment myself or have it shipped?

[Johnny Friday]

Baja Productions:

Do you recommend that I bring the equipment myself or have it shipped?

I shouldn't have to tell you about shipping to Mexico---it is the WORST!!! you can imagine a lowly paid Aduana agent randomly opening your RED 1 package and poking around in there--no? I have had so many things stolen in the mail---all coming DHL---they get sorted in Guadalajara I think....anyway, I have had CF cards stolen out of cameras I've shipped down. Oxygen sensors stolen (for my technical dive gear)--and of no use to an Aduana agent. Anyway....the point is ----no to shipping to Mexico. I would bring it with me personally and declare it. BUT---there are also certain deductions or reductions in imporation fees for businesses. So you should check that before you just walk it across. If you don't do it with a commercial broker, then you'll pay the standard 18.5 or 17.9% import fees (whatever it is at the moment). But if you do it with a commercial broker and you have an imporation license from Aduana or---check with them first what the process is to import your gear for work. you may find out you can get it into the country for only 7-9%.

But definately if you go to pick it up in CA, you'll pay taxes and then later prove to them you imported it and supply RED with your imporation papers---and you should get your tax money back. Of course, someone at RED has to approve that and they must have their own requirments. I'm sure they deal with out of country sales all of the time---or should i say they will and from Jannard's prior business history, this must be a no brainer.

best,
Johnny

[Johnny Friday]

Julian,
you might ask RED...if you have it shipped to a customs broker....is that sufficient enough to avoid CA. taxes. Then you go and pick it up at the broker--but even then you have to worry about your camera in someone's hands that you don't know.