Why we charge California Use tax – by Syeda Meherunnisa

Customers sometimes question the need to pay California Use Tax which we include in quotations and charge for tooling and production fixtures.

California Use Tax is imposed when you use, consume, give away or store tangible personal property, i.e., products you can see, weigh, feel or touch, such as tooling used to produce medical cables. The rate of Use Tax is determined by where the property will be used regardless of where the customer is located or their tax status.

Because we use tooling in production in Orange County California, we must charge California Use Tax at the local rate (currently 8.75%) in effect.