Sales Tax , Orange Essay

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Sales Tax in Orange County, California
Name:ghzal b

Definition and analysis of sales tax in Orange County
 The Sales and Use tax Law was enacted in California in 1933 and, since, sales tax in the entire state of California is imposed on retail sale of tangible personal property. Besides the law, regulations set by the State Board of Equalization (BOE) and the Orange County Tax Department must be followed in the payment and returns of sales taxes. 
 There is a state-wide floor of 7.5% sales tax, but some counties have enacted laws to raise the sales tax to up to 9.5%. Orange County is famous for rejecting an increase in the Sales tax to redeem itself from bankruptcy after the investment strategies of Robert Citron flopped in 1994. However, the rate of Sales tax in Orange County currently stands at 8.750%. To calculate the tax, the seller needs to multiply the price of the property retailed by 0.875. Tax assessment is a sensitive area of public administration and requires definition, analysis and interpretation of the law literally and contextually. These laws are also required to identify tax avoiders and their penalties. 
 Retailers of all tangible personal property, excluding certain exceptions, are required by law to file returns for sales tax for every transaction (Bone, 2006, p. 20). The sales tax is computed by gross receipts from retail sales. These ‘gross receipts’ include all cash or credit receipts made by the seller excluding the amounts of taxes imposed by the federal government with respect to retail sales e.g., value added taxes. Gross receipts also do not encompass taxes imposed on diesel fuel or the amount of any transaction or sales tax imposed by the Orange County treasurer (Bone, 2006, p. 25). 
 Obviously, it follows that retail sales with respect to intangible personal property cannot be charged with sales taxes. For example, the law stipulates that sales tax cannot be measured by the amounts charged for the transfer of technology or transporting landfills. However, the law recognizes the transfer of interest in property via a lease as a continuing sale of the tangible personal property by the lessor to the lessee and, therefore, lease transactions are subject to sales taxation (Bone, 2006, p. 28). The sales tax must be collected continually- upon every payment pursuant to the lease according to the lease agreement. 
 Leases with respect to some items are, however, exempt from this general rule. If the properties under the lease consist of certain stipulates types of television films, tapes, and motion pictures, certain types of cloth, certain mobile transportation equipment or certain home furnishings, they are tax allowable. The law is also specific that the lease must be valid for not less than one day; it must be charged at the rice of at least twenty dollars by the lessor and the lessee must be at liberty to use the tangible personal property outside the premises or business location of the lessor. 
 It is noteworthy also that the tangible personal property must also be bought for the purpose of use to be subject to sales tax. If the purchaser buys the property for the purpose of resale, the seller must not file returns for the transaction. However, not all individuals or organizations who buy from manufacturers, jobbers or wholesalers buy the property for resale. Resellers must be identified by the seller by their permit number. This requirement was enacted to prevent the situation of sellers avoiding the payment of sales tax under the mischievous pretext that buyers of the property were resellers. 
What is required of sellers 
 Every seller, whether acting in individual capacity, for a partnership or joint stock company must apply for a permit from the State Board of Equalization (BOE) provided they are in the business of selling the personal property that is tangible and must be taxed according to the law (Pierce, 1963, p. 34). Sellers with various business premises must acquire permits for each…