Ca Occasional Sale Rule
Generally, when a dentist or physician sells her lone practice, she will not have to pay any California sales tax on the purchase price of her practice. This is because the transaction will usually qualify as an “occasional sale” under California law.
- For Businesses
- Taxability
- More
- Apportionment and allocation Single-sales factor and three-factor apportionment formulas, and nonbusiness income A trade or business with income inside and outside of California may be subject to California apportionment and allocation rules. Business income is subject to apportionment and nonbusiness income is subject to allocation.
- Vendors, including those making occasional sales in Vermont (e.g., an out-of-state vendor selling at a craft fair), must collect sales tax at the time and place of sale. Vermont Department of Taxes (Form BR-400) Virginia: Sales tax applies to all taxable retail sales in Virginia.
- Courts have held that commission pay may be based on the number of sales made by the salesperson, the value of the sales, or the employer’s profit on the sales. CarMax, Inc., 195 Cal. 4th 996, 1006 (2011); Muldrow v. Surrex Solutions Corp., 208 Cal App. 4th1381, 1395 (2012). But a payment based on the actual production of a.
- This form should be mailed to the following address: Department of Motor Vehicles Notice of Transfer and Release of Liability P.O. Box 942859 Sacramento, CA Warning If you do not report the sale of your car to the Department of Motor Vehicles, you are taking on some risk.
What purchases are exempt from the California sales tax?
While the California sales tax of 6% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in California.
Sales Tax Exemptions in California
In California, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.
Medical devices such as prosthetics are exempted from sales tax. In addition, certain groceries, hot beverages, some types of farm items, and certain alternative-energy device are also considered to be exempt from the California sales tax.
Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for California:
Groceries
EXEMPTPrescription Drugs
EXEMPTThese categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as 'unprepared food', while pre-prepared food may be subject to the restaurant food tax rate.
Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a 'grocery':
Are services, shipping, installation, etc taxable in California?
The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the California sales tax see the California sales taxability FAQ page.
Ca Occasional Sale Rule California
Ca Occasional Sale Rule 34
Other tax-exempt items in California
This table lists a number of additional categories of goods and services that are exempt from California's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in California.
| Category | Exemption Status |
|---|---|
| Food and Meals | |
| Grocery Food | EXEMPT* |
| Manufacturing and Machinery | |
| Machinery | EXEMPT* |
| Raw Materials | EXEMPT* |
| Utilities & Fuel | EXEMPT* |
| Medical Goods and Services | |
| Medical Devices | EXEMPT* |
| Medical Services | EXEMPT |
| Occasional Sales | |
| General Occasional Sales | EXEMPT |
| Optional Maintenance Contracts | |
| General Optional Maintenance Contracts | EXEMPT |
| Services | |
| Janitorial Services | EXEMPT |
| Transportation Services | EXEMPT |
| Software and Digital Products | |
| Canned Software - Downloaded | EXEMPT* |
| Custom Software - Delivered on Tangible Media | EXEMPT |
| Custom Software - Downloaded | EXEMPT |
| Digital Products | EXEMPT |
* See notes in category taxability page for details