Any Good Online Dealers For The Camera? I know
- Thread starter SquidLips
- Start date
Barry_Green
Moderator
If you're in California, look into the production equipment sales tax reduction form. It'll cut the tax down to 3%, IIRC. That way a company like EVS might be able to provide superb local service, and a competitive price, even after tax...
In my industry- commercial still photography- and any other industry with which I'm familiar, all purchases are subject to some sort of sales tax. Yes, you can buy out of state to avoid sales tax, but you are supposed to pay "use tax" in the same amount here in CA.
If, at some point during your professional career, you are audited by the State Board of Equalization (the authority who controls the collection and payment of sales tax), one of the first documents they will request is those of capital equipment purchases, including computers, cameras, lenses, lighting etc.
Should you have purchase receipts for that equipment that does not reflect payment of CA sales tax, and you did not file the appropriate forms with your use tax payments, you will be charged for those tax amounts plus fines and penalties. And, they will likely increase your deposit amount with the Board, and will likely return with future audits.
That typed, if you operate under the radar- no resale license, etc, you will probably get away with it. But when you begin filing tax returns as a business, obtain a business license, try to write off equipment expenses, your visibility will increase.
If you are already on the radar screen (like getting a resale license for use at Costco) paying the sales tax is cheap insurance. If audited and you are demonstrating compliance, they are less likely to use the extra-long proctoscope to examine the rest of your records. If they audit you for a single quarter and find compliance, they will limit their audit to the single quarter. If they find that you've fudged a little, they will then dig much, much harder.
Personally, I don't give them the excuse. It's just not worth it.
I know nothing about the production equipment sales tax reduction Barry mentioned, and perhaps I should...
fn
If, at some point during your professional career, you are audited by the State Board of Equalization (the authority who controls the collection and payment of sales tax), one of the first documents they will request is those of capital equipment purchases, including computers, cameras, lenses, lighting etc.
Should you have purchase receipts for that equipment that does not reflect payment of CA sales tax, and you did not file the appropriate forms with your use tax payments, you will be charged for those tax amounts plus fines and penalties. And, they will likely increase your deposit amount with the Board, and will likely return with future audits.
That typed, if you operate under the radar- no resale license, etc, you will probably get away with it. But when you begin filing tax returns as a business, obtain a business license, try to write off equipment expenses, your visibility will increase.
If you are already on the radar screen (like getting a resale license for use at Costco) paying the sales tax is cheap insurance. If audited and you are demonstrating compliance, they are less likely to use the extra-long proctoscope to examine the rest of your records. If they audit you for a single quarter and find compliance, they will limit their audit to the single quarter. If they find that you've fudged a little, they will then dig much, much harder.
Personally, I don't give them the excuse. It's just not worth it.
I know nothing about the production equipment sales tax reduction Barry mentioned, and perhaps I should...
fn
Rush
DVXuser Sponsor
That is some good info Fakename. In the video industry though, the BOE goes to great lengths to keep Film and Video Teleproduction and Post from leaving CA. Hence that form. We have been using it since 1999, and to date, not a single one of 1000's of our customers has reported to us that they have been harrassed for using it. This also applies to Abel Cine, Samy's, etc... No one has ever come back and said, "Boy did I get in trouble because of that form."
When I was a photog, I would have never dared do any kind of sales discount, but after moving to CA, and accumulating a body of work to act as proof that I support myself with Teleproduction, that fear went away.
Boy that is some good experienced info that you had there though. I saved it as a text file on my desktop :thumbsup: and I never really do that anymore...
When I was a photog, I would have never dared do any kind of sales discount, but after moving to CA, and accumulating a body of work to act as proof that I support myself with Teleproduction, that fear went away.
Boy that is some good experienced info that you had there though. I saved it as a text file on my desktop :thumbsup: and I never really do that anymore...