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California Civil Code Section 1656.1

Legal Research Home > California Laws > Civil Code > California Civil Code Section 1656.1

1656.1.  (a) Whether a retailer may add sales tax reimbursement to
the sales price of the tangible personal property sold at retail to a
purchaser depends solely upon the terms of the agreement of sale. It
shall be presumed that the parties agreed to the addition of sales
tax reimbursement to the sales price of tangible personal property
sold at retail to a purchaser if:
   (1) The agreement of sale expressly provides for such addition of
sales tax reimbursement;
   (2) Sales tax reimbursement is shown on the sales check or other
proof of sale; or
   (3) The retailer posts in his or her premises in a location
visible to purchasers, or includes on a price tag or in an
advertisement or other printed material directed to purchasers, a
notice to the effect that reimbursement for sales tax will be added
to the sales price of all items or certain items, whichever is
applicable.
   (b) It shall be presumed that the property, the gross receipts
from the sale of which is subject to the sales tax, is sold at a
price which includes tax reimbursement if the retailer posts in his
or her premises, or includes on a price tag or in an advertisement
(whichever is applicable) one of the following notices:
   (1) "All prices of taxable items include sales tax reimbursement
computed to the nearest mill."
   (2) "The price of this item includes sales tax reimbursement
computed to the nearest mill."
   (c) (1) The State Board of Equalization shall prepare and make
available for inspection and duplication or reproduction a sales tax
reimbursement schedule which shall be identical with the following
tables up to the amounts specified therein:

                   4 3/4 percent
  Price                                       Tax
  .01- .10 .................................. .00
  .11- .31 .................................. .01
  .32- .52 .................................. .02
  .53- .73 .................................. .03
  .74- .94 .................................. .04
  .95-1.15 .................................. .05
                     5 percent
  Price                                       Tax
  .01- .09 .................................. .00
  .10- .29 .................................. .01
  .30- .49 .................................. .02
  .50- .69 .................................. .03
  .70- .89 .................................. .04
  .90-1.09 .................................. .05
                   5 1/4 percent
  Price                                       Tax
  .01- .09 .................................. .00
  .10- .28 .................................. .01
  .29- .47 .................................. .02
  .48- .66 .................................. .03
  .67- .85 .................................. .04
  .86-1.04 .................................. .05
                   5 1/2 percent
  Price                                       Tax
  .01- .09 .................................. .00
  .10- .27 .................................. .01
  .28- .45 .................................. .02
  .46- .63 .................................. .03
  .64- .81 .................................. .04
  .82- .99 .................................. .05
  1.00-1.18 ................................. .06
                   5 3/4 percent
  Price                                       Tax
  .01- .08 .................................. .00
  .09- .26 .................................. .01
  .27- .43 .................................. .02
  .44- .60 .................................. .03
  .61- .78 .................................. .04
  .79- .95 .................................. .05
  .96-1.13 .................................. .06
                     6 percent
  Price                                       Tax
  .01- .08 .................................. .00
  .09- .24 .................................. .01
  .25- .41 .................................. .02
  .42- .58 .................................. .03
  .59- .74 .................................. .04
  .75- .91 .................................. .05
  .92-1.08 .................................. .06
                   6 1/4 percent
  Price                                       Tax
  .01- .07 .................................. .00
  .08- .23 .................................. .01
  .24- .39 .................................. .02
  .40- .55 .................................. .03
  .56- .71 .................................. .04
  .72- .87 .................................. .05
  .88-1.03 .................................. .06
                   6 1/2 percent
  Price                                       Tax
  .01- .07 .................................. .00
  .08- .23 .................................. .01
  .24- .38 .................................. .02
  .39- .53 .................................. .03
  .54- .69 .................................. .04
  .70- .84 .................................. .05
  .85- .99 .................................. .06
  1.00-1.15 ................................. .07
                   6 3/4 percent
  Price                                       Tax
  .01- .07 .................................. .00
  .08- .22 .................................. .01
  .23- .3 7.................................. .02
  .38- .5 1.................................. .03
  .52- .66 .................................. .04
  .67- .81 .................................. .05
  .82- .96 .................................. .06
  .97-1.11 .................................. .07
                     7 percent
  Price                                       Tax
  .01- .07 .................................. .00
  .08- .21 .................................. .01
  .22- .35 .................................. .02
  .36- .49 .................................. .03
  .50- .64 .................................. .04
  .65- .78 .................................. .05
  .79- .92 .................................. .06
  .93-1.07 .................................. .07
                   7 1/4 percent
  Price                                       Tax
  .01- .06 .................................. .00
  .07- .20 .................................. .01
  .21- .34 .................................. .02
  .35- .48 .................................. .03
  .49- .62 .................................. .04
  .63- .75 .................................. .05
  .76- .89 .................................. .06
  .90-1.03 .................................. .07
                   7 1/2 percent
  Price                                       Tax
  .01- .06 .................................. .00
  .07- .19 .................................. .01
  .20- .33 .................................. .02
  .34- .46 .................................. .03
  .47- .59 .................................. .04
  .60- .73 .................................. .05
  .74- .86 .................................. .06
  .87- .99 .................................. .07
  1.00-1.13 ................................. .08

   (2) Reimbursement on sales prices in excess of those shown in the
schedules may be computed by applying the applicable tax rate to the
sales price, rounded off to the nearest cent by eliminating any
fraction less than one-half cent and increasing any fraction of
one-half cent or over to the next higher cent.
   (3) If sales tax reimbursement is added to the sales price of
tangible personal property sold at retail, the retailer shall use a
schedule provided by the board, or a schedule approved by the board.
   (d) The presumptions created by this section are rebuttable
presumptions.
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Last modified: March 17, 2014