USC 12-6-6-SS: A Comprehensive Guide to the California Tax Code

Introduction

The California Tax Code is a complex and constantly evolving body of law. It can be difficult for taxpayers to understand their obligations, especially when it comes to sales and use taxes. The USC 12-6-6-SS is one of the most important sections of the Tax Code for businesses that sell goods or services in California. This article will provide a comprehensive overview of the USC 12-6-6-SS, including its requirements, exemptions, and penalties.

What is the USC 12-6-6-SS?

The USC 12-6-6-SS is a section of the California Tax Code that imposes a sales and use tax on the sale or use of tangible personal property in California. The tax rate is currently 6%, but it can vary depending on the county or city in which the sale or use occurs.

The USC 12-6-6-SS defines tangible personal property as "personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses." This includes goods such as furniture, appliances, clothing, and vehicles.

Who is Required to Collect and Pay the USC 12-6-6-SS?

Any business that sells or leases tangible personal property in California is required to collect and pay the USC 12-6-6-SS. This includes businesses that sell online, through catalogs, or at brick-and-mortar stores.

Businesses are required to register with the California Department of Tax and Fee Administration (CDTFA) and obtain a Seller's Permit. The Seller's Permit number must be displayed on all invoices and receipts.

Exemptions from the USC 12-6-6-SS

There are a number of exemptions from the USC 12-6-6-SS, including:

• Sales of food and beverages for human consumption
• Sales of prescription drugs and medical devices
• Sales of gasoline and diesel fuel
• Sales of newspapers and magazines
• Sales of agricultural products
• Sales of vehicles subject to the Vehicle License Fee

A complete list of exemptions can be found on the CDTFA website.

Penalties for Non-Compliance

Businesses that fail to collect and pay the USC 12-6-6-SS may be subject to penalties, including:

• Fines of up to $1,000 per transaction
• Imprisonment of up to one year
• Suspension or revocation of the Seller's Permit

How to Comply with the USC 12-6-6-SS

Businesses can comply with the USC 12-6-6-SS by following these steps:

1. Register with the CDTFA and obtain a Seller's Permit.
2. Display the Seller's Permit number on all invoices and receipts.
3. Collect the correct amount of sales tax from customers.
4. File a sales and use tax return with the CDTFA on a quarterly basis.
5. Pay the sales and use tax due to the CDTFA.

Benefits of Complying with the USC 12-6-6-SS

Complying with the USC 12-6-6-SS can benefit businesses in a number of ways, including:

• Avoiding penalties and fines
• Protecting the business's reputation
• Building trust with customers

Common Mistakes to Avoid

Businesses should avoid making the following common mistakes when complying with the USC 12-6-6-SS:

• Failing to register for a Seller's Permit
• Collecting the wrong amount of sales tax
• Failing to file a sales and use tax return
• Failing to pay the sales and use tax due

Conclusion

The USC 12-6-6-SS is a complex law, but it is essential for businesses that sell or lease tangible personal property in California to understand their obligations. By following the steps outlined in this article, businesses can comply with the law and avoid penalties.

Additional Resources

• California Department of Tax and Fee Administration: https://www.cdtfa.ca.gov/
• California Tax Code: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=TAX§ionNum=12666.
• Sales and Use Tax Rates by County: https://www.cdtfa.ca.gov/taxes-and-fees/sales-and-use-taxes/sales-and-use-tax-rate-lookups/sales-and-use-tax-rates-by-county.htm
• Exemptions from Sales and Use Tax: https://www.cdtfa.ca.gov/taxes-and-fees/sales-and-use-taxes/exemptions-sales-and-use-tax.htm

Tables

Table 1: Sales and Use Tax Rates by County