Selling Fireworks in California
- Sales Tax News
- Jul 3, 2014 | Gail Cole
California State Board of Equalization (BOE) reminds that when they are available for sale, sales tax applies.
Merchants selling fireworks and other taxable goods on a temporary, short-term basis are required to register for a temporary California seller’s permit and report sales and use tax. Typical temporary businesses include:
- Christmas tree vendors;
- Crafts fair, flea market, swap meet, or similar event vendors;
- Fireworks vendors;
- Hobbyists or businesses selling crafts, handmade or purchased for resale; and
- Homeowners or renters who hold more than two garage sales in a calendar year.
According a BOE news release, tax revenue generated by more than 14,000 temporary sellers in FY 2012-13 “helped support law enforcement, firefighters, education, healthcare, and other community services.” That’s a lot of fireworks and crafts.
Temporary sellers should register for a temporary seller’s permit through the BOE’s online registration system.
Do you collect the sales tax required by law? Are you sure?