Purchasing Resources for California State Taxes

California State Taxes Key Terms

Learn more about California state tax terms
By Sandy Baker California state tax laws are very strict and numerous. These laws can make it difficult for any business to ensure they are reporting all they need to. For example, some businesses may not realize the new employee reporting requirement. Businesses also need to know the tax rate, how to obtain resale certificates and what the large corporate understatement penalty is.

New employee reporting

Tax laws in California require that the hiring of new employees be reported to the state. This aids the state in finding tax and child support debtors.
Try:  The Employment Development Department of the State of California provides more information on this requirement.

Tax rate

The California state tax rate is the amount of taxation on the sales and use within the state. The sales and use tax rate changes intermittently.
Try:  The California State Board of Equalization provides more information on what the tax rate is and how it is calculated.

Resale certificates

Businesses that purchase items for resale can become registered sellers with the state by obtaining resale certificates. This certificate stipulates that the purchaser does not have to pay tax at the time of the purchase, because the item is going to be resold.
Try:  The California Tax Service Center provides more information on resale certificates.

Large corporate understatement penalty

California requires that businesses understand the large corporate understatement penalty. This penalty is applied to corporations that fail to report all taxes. The penalty is for 20% of the total amount that was understated, whenever the corporation fails to report taxes in excess of $1 million.
Try:  The State of California Franchise Tax Board provides more information about large corporate understatement penalties.

E-Services

Many of California's taxes can be paid online through e-services. In addition, e-services also allow businesses to make changes to address information and to register for an employee account number.
Try:  The Employment Development Department offers more information about e-services.

Alcoholic beverage tax program

The alcoholic beverage tax program is a program that collects a tax at the sale, distribution and importation of alcoholic beverages. It is an excise tax collected on a per-gallon sale.
Try:  The California Department of Alcoholic Beverage Control provides more information.

---