Why is sales tax evasion harmful?
* Sales tax supports a broad range of state services, from parks to prisons. Sales tax evasion reduces the revenue available to fund these important services. * In addition, sales tax is a major source of revenue for many cities and counties, which depend on the income for police and fire service, courts, roads, health care, and more. Tax evasion hurts all of us by reducing the amount of money available for these essential services. * Sellers who do not pay the tax they owe put honest businesses at a competitive disadvantage. Report Sales Tax Evasion Public awareness and involvement are essential in eliminating sales tax evasion. To report suspected sales tax evasion, contact the Board of Equalization Investigations Division at 916-324-0105 or the Tax Evasion Hotline at 888-334-3300.