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This form is used to report and pay state sales tax. If you filed a
BOE-400, you must complete
this form, even if you only sold wholesale and don't owe sales tax.
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| Forms to use | |
BT401 Quarterly Tax Return of Sales and Use Tax |
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| Before we begin | |
The goal of the BT-401 form is to calculate sales tax and then divide it
into the proper categories.
The basic 7.25% state sales tax is actually three state required taxes: 6% state sales tax, ¼%
county tax, and 1% local tax.
In addition, if you conducted business in any other county or city that voted to increase its
sales tax beyond 7.25%, there are one or more district taxes with tax rates ranging from .0125%
to .5%
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| How often | |
Usually a quarterly payment and reporting requirement |
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| Due date | |
Usually one month after calendar quarter-end:April 30, July 31, October
31, January 31. Some businesses complete this form annually, others monthly. |
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| If you sell wholesale only | |
| Line | What to enter |
| 1-3 | (instructions below) |
| 4 | Put the total sales you made to customers who will incorporate it
into their product or will resell it. |
| 5 | Line 3 minus line 4. If this equals 0, you do not owe sales tax.
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| 13, 17-26 | Put 0 |
| Sign | Sign the form and you're done. |
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| Everyone else | |
All other businesses must complete the entire form and separate out the
four types of sales tax:
- 6% state sales tax
- ¼% county tax
- 1% local tax
- District taxes ranging from .0125% to .5%
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| Line | What to enter |
| 1 | Gross (total) sales. Do not include sales tax revenue |
| 2 | Items you purchased without paying sales that that really should
have been taxed and items subject
to use tax (applies if you lease products). Please note that use tax applies to purchases made
on the Internet or from out-of-state that you have used or consumed. See Use Tax
or contact the Board of Equalization for use tax information.
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| 3 | Add line 1 and line 2. |
| Page 2 | Sales you made where no sales tax was due
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| 10 | Bad debt losses, returned merchandise, discounts plus manufacturers
state tax exemptions (including
the special tax exemptions). If you have any special tax exemptions, you must also complete Schedule T. |
| 11 | Total exempt sales (line 4 through 10). Put this on page 1 as well. |
Back to page 1
12 | Net taxable sales (line 3 minus line 11) |
| 13 | Multiply line 12 by 6%. |
| 14 | Add back any manufacturer's state tax exemption that you deducted on line
10e to line 12 and put the
total in (a). Multiply the total in (a) by ¼% |
| 15 | Adjustments. Usually 0 except for water vessels and aircraft.
See BT-401 instructions. |
| 16 | Subtract any adjustments from line 14(a). |
| 17 | Multiply line 16 by .01. |
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| Now: District taxes | |
So far, you've accounted for a 7.25% sales tax.
The next step is to calculate the district sales
tax. To do that you need to determine where your business locations were during the last quarter.
Your business locations include any county where:
- Any part of your business is located (including storage or showroom);
- A representative, agent, salesman, canvasser, or solicitor operates; or
- Your business receives income from rentals or leases.
List the counties where your business operates (see Collecting Sales Tax). Record the county sales tax next to the name.
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If none of the counties had more than 7.25% sales tax, line 18 should be 0.
Skip the next section and go to line 19.
- If any of the counties had more than 7.25%, you must complete the Schedule A.
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| Sch. A | |
| Line | What to enter |
| A-1 | Same as line 16 on the front of form BT-401. |
| A-2 | Sales made outside and delivered outside the special tax
districts shown.
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| A-3 | Sales made from these districts, but delivered outside the special
tax districts.
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| A-4 | Total special district sales which must be allocated: A-1
minus A-2 minus A-3.
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Now, see if any counties where you conduct business are listed on the first column. You only
need to include sales to those counties on this page.
| Line | What to enter |
| A-5 | Allocate the sales you reported in line A-4 above to the various districts shown in the first
column. If any area has 8% or more sales tax, you must list the same sale on two lines.
Therefore, the total sales you report in column A-5 may be greater than what you reported on line
A-4. |
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| A-6,7 | 0, unless you had any adjustments on line 10 (on the front of BT-401) for
- Bad debts, cash discounts, returned merchandise, from sales made in special tax districts OR
- If you had taxable purchases made in special tax districts where your supplier failed to collect the district's
special tax OR
- You had fix price contract sales where the contract was made prior to the effective
date of the special tax district.
Please see the form's instructions if any of these apply.
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| A-8 | Total taxable sales in each district: Line 1-5 plus A-6, minus A-7
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| A-10 | Total tax due each district: Multiply line A-8 by the sales
tax shown.
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| Final step | |
| Page 1 | What to enter |
| 18 | Add the results from Schedule A and enter the total in
line 18 |
| 19 | Add lines 13, 14(b), 17 and 18. |
| 20 | Credits. If you paid sales tax to another state.
See BT-401 instructions if this applies to you.
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| 21 | Total sales tax you owe: Line 19 minus line 20. |
| 22 | Payments you made during the quarter (only necessary if
the Board of Equalization notifies you). |
| 23-26 | Net sales tax due.
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| How to submit | |
There are two ways to submit BOE-401 and pay sales tax.
Want to pay by credit card? Go to http://www.boe.ca.gov/elecsrv/internet.htm. The regular merchant fee for
credit card transactions (about 2.5%) will be charged to you as a "convenience fee". You can also pay with your credit card over the phone by calling 1-800-2PAY-TAX. The
same fees apply. |
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| Questions? | |
For questions or to periodically check to make sure the tax rates haven't changed,
visit http://www.boe.ca.gov/sutax/sutprograms.htm or
call the Board of Equalization at (800) 400-7115.
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