Building the best-engineered systems and solutions for commercial and industrial operations takes commitment, skill and trust. Whether it is for pharmaceutical, biotech, high technology manufacturers, medical facilities, engineering or construction communities, Q Applied Systems has been a manufacturer’s representative for engineered HVAC systems and solutions for commercial and industrial operations for over 25 years.
January 1, 2017, the California sales and use tax rate decreased 0.25 percent – from 7.50 percent to 7.25 percent. The 2012 voter-approved Prop 30 sales and income tax has expired, and we want you to know what this means for you and your business.
Some of the Numbers
The statewide sales and use tax decrease of 0.25 percent applies to all taxable sales and purchases that you have made prior to January 1, 2017. Any fixed-price contract or fixed-price lease agreement on any of our dust collection systems, dehumidifiers, ventilation systems or fume extractors is affected by this change. It is important for you to know that the new decreased rate replaces the rate that was in effect when you first entered the fixed-price contract or fixed-price lease agreement.
The California state board of equalization (BOE) website states:
“The applicable sales and use tax rate is the rate that is in effect at the time the sale occurs. Generally, the sale occurs when the merchandise is delivered to the customer, unless the sales contract specifically states that title to the merchandise passes to the customer prior to delivery.”
Click here http://www.boe.ca.gov/sutax/prop30.htm if you would like to learn more about the statewide rate reduction.
Please remember to check the additional supplemental tax rates that may also change for the various California counties and cities. Click here http://www.boe.ca.gov/sutax/pam71.htm to review the 2017 rates.
What Happens with Q Applied Systems that are Delivered after January 1, 2017?
At Q Applied Systems, the sale occurs when the system is delivered to you, so most sales of our systems and hardware delivered to you on and after January 1, 2017 will be subject to the new tax rate of 7.25 percent plus any applicable district taxes.
Q Applied Systems has been proudly serving Southern California, Baja California, and Mexico for over 25 years and our commitment to customer service has never wavered. We care. We are compliant. Your satisfaction is guaranteed.
What to do next:
- Share this article on LinkedIn with anyone that should know taxes dropped.
- If you have questions about an upcoming project give us a call at (858) 435-2236.
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