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PCard Transaction Sales and Use Tax


Sales and use tax affect most PCard purchases. 

  • Sales Tax: Sales tax is imposed on every merchant for the privilege of making retail sales of tangible personal property (TPP) in California. It is determined by the goods' shipping location OR the location where title exchanged hands (i.e., in-store purchases).

    EXAMPLE 1: Items shipped to UCLA campus should be taxed at 9.5%, the current Los Angeles tax rate. 

    EXAMPLE 2: Items shipped to UCLA Santa Monica Clinic should be taxed at 10.25%, the current Santa Monica tax rate. If the merchant is located in Santa Monica and shipping the item(s) to UCLA, the receipt/invoice should reflect the Los Angeles tax rate of 9.5%. 

    EXAMPLE 3: Items purchased in Burbank should be taxed at 10.25%, the current Burbank tax rate. 

  • Use Tax: Use tax is imposed on the purchaser for the storage, use, or consumption of tangible personal property (TPP) in California. It is usually accrued when the retailer is out-of-state and the purchased goods will be used in California. 

When is a Purchase Considered Taxable?

The law generally requires that tax be paid on all purchases and sales of TPP in California. For example, sales tax is due on purchases of clothing, electronics, and supplies. 

When is a Purchase Considered Non-Taxable?

Here are some examples of non-taxable purchases:

  • Services,
  • Professional membership fees, advertising fees, subscriptions, license renewals, and
  • Candy, snack foods, and non-carbonated bottled water.