My understanding, based on my own business and my contributions on others' CDs, is that contributor and promotional copies are considered business expenses, and thus not subject to sales tax. Gift copies, OTOH, would be items drawn from your business for personal use, and thus subject to certain taxes, including sales.
That would be my guess as well. I also have to pay "use tax" on items mail-ordered from out of state. Which, now that you mention it, is something I haven't done yet. Urk!
Wisconsin has the 'use tax' concept on its income tax form 1 and 1A. Where and how does a private person/non-sole-proprietor file use tax in California?
One files for a seller's permit from the California State Board of Equalization; this also makes it possible for you to buy raw materials at places like Costco without paying sales tax.
I believe there's a box on the state income tax form that people who don't have a seller's permit can use to file use tax, but I've never heard of anyone actually using it.
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But I would definitely seek feedback from the experienced likes of billroper, bedlamhouse, cadhla, filkertom and tollers.
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I believe there's a box on the state income tax form that people who don't have a seller's permit can use to file use tax, but I've never heard of anyone actually using it.
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Don't even joke about that, let alone put it in a public LJ post.
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