What is sales tax evasion?
In general, retail sales of tangible personal property in California are subject to sales tax. The responsibility for paying the sales tax is upon the seller (retailer). The sales tax rate varies statewide; however, the statewide tax rate base is 8.25 percent. The rate is higher in locations where voters have approved additional “district taxes”. Under the California Revenue and Taxation Code, any person who evades the reporting, assessment or payment of sales taxes that would otherwise be due may be guilty of sales tax evasion. Violators are subject to fines and/or jail time. Examples of sales tax evasion: * Retailers collect sales tax reimbursement from their customers on sales but intentionally fail to report and pay the tax collected. * Retailers intentionally fail to report all retail sales on which sales tax is due.
