A taxing situation

When you sell a product, you have to pay sales tax in California. Book sales on Etsy take care of themselves – Etsy collects the tax and remits it on my behalf. If I sell books directly, which I’ve done for local folks, then I am responsible for collecting and submitting the sales tax.

Most people react negatively when you mention taxes. I actually appreciate paying taxes – I see it as my part of contributing to a public revenue stream that allows the government to make investments on our behalf. Tax revenue is used for paving roads and funding research and protecting our environment and more. Elected officials who reflect the priorities of their constituents can only do their jobs if there are public resources available to them. I wish all businesses, not just the small ones, paid their fair share, just like we need all individuals to pay their fair share. I can do my part, which includes helping elect good candidates and meeting my tax obligations.

To pay sales tax, you have to register with the State of California and get a number and an account. That should be straightforward. It’s not. What I have discovered, however, is that when one can get to a human being, these complicated processes can be less painful. A very nice customer service person with the state finance department walked me through the process and now I’m registered. This means, among other things, that I don’t have to pay sales tax on supplies and materials I buy for this enterprise, like mailing envelopes. That’s cool.