The California State Board of Equalization (BOE) now requires business owners (taxpayers) who hold a seller’s permit for a permanent place of business and who also make sales at temporary locations (such as swap meets, flea markets, trade or specialty shows, fairs, festivals, and similar limited-term events) to register and hold a sub-permit for each selling location for sales and use tax purposes. Registration of these selling locations ensures that cities and counties receive the appropriate local and district taxes. Taxpayers will report the sales made at these locations when they file their sales and use tax returns.
Registration for Those Who Make Sales at Temporary Locations
Those who make or will make sales at temporary locations need to register for a permit for the temporary location, even if they already hold a seller’s permit for a permanent place of business. To register and obtain a sub-permit, taxpayers should call the BOE Taxpayer Information Section at 800-400-7115 or their local BOE office and state that they would like to register and obtain a sub-permit for the temporary selling location(s). The BOE will offer an Internet-based registration this summer called “eReg” that will allow businesses to register for permits and/or licenses online for most of the tax and fee programs administered by the BOE. This service will also allow taxpayers who have existing seller’s permits to register any future temporary selling locations online.
Operators of Swap Meets, Flea Markets, or Special Events
Swap meet, flea market, or special event operators are required by state law to document, in writing, the seller’s permit status of all people who sell at their event. They may not rent space to sellers unless they have a seller’s permit or sub-permit that indicates the address of the temporary selling location.
Inactive Business Locations
Taxpayers must notify the BOE when any of their business locations (including the types of selling locations registered under the taxpayer’s account) become inactive and no longer make sales. If a taxpayer’s seller’s permit is revoked, a fee of $100 per active business location plus any outstanding balance of tax, penalty, and interest due will be required to be paid to reinstate the revoked account. Special Notice L-306, California State Board of Equalization, April 2012.
