Business FinancesQuestion 1163 of 1605
California sales tax rates vary by location because:
a.Rates are the same statewide with no variation
b.Sales tax applies only to labor
c.Local district taxes are added on top of the statewide base rate
d.The CSLB sets each contractor's rate
Explanation
California has a statewide base sales/use tax rate plus local (district) taxes that voters add in specific cities and counties, so the combined rate varies by location. Contractors must apply the rate in effect where the material is used.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)