CALIFORNIA SALES TAX
Most sellers at O Scale West are occasional sellers. Occasional sellers do not need to collect and report California sales tax.
In general, one is an occasional seller if they are not in the model railroad business full time, and they do not sell at more than two train events in a calendar year. In other words, most of us who are merely revising our collection are occasional sellers.
The following may help to illustrate this: Rod Miller has two tables at OSW. One is for his full-time model railroad-related business; for that table Rod is a business seller, and sales tax is collected and reported for sales made at that table. At his other table Rod sells his personal model railroad items. At that table he is an occasional seller.
Note: if you are in the model railroad business full time in another state, and only sell in California once a year at O Scale West, you are not an occasional seller. The California Board of Equalization (BOE) requires OSW to collect a simple form (BOE 410-D) from you that attests to your sales tax status as a seller. You must identify yourself (mailing address or California driver's license number) and check one of three boxes, which are:
- You are exhibiting only (no sales tax issues)
- You are selling items not as an occasional seller (must have a California resale number, and must collect and report sales tax)
- You are an occasional seller (no sales tax issues)
OSW provides that form. You must complete it and give it to OSW in order to receive your registration packet.
If you have any questions please call Rod Miller. PLEASE do not wait until the last minute! If your activity is such that you need to collect sales taxes and you need to get a California resale number from the California BOE, that make take a few days if done by fax. Out of state sellers can obtain a temporary number in less than a day after they submit the paperwork.
Want to learn more about 2-rail O scale? Visit the O Scale Kings website.