A handbook of sales tax, use tax, and admissions tax for the schools of California

121 Pages·05.063 MB·English

by  Lueck, Robert John

A HANDBOOK OP SALES TAX, USE TAX, AND ADMISSIONS TAX
FOR THE SCHOOLS OF CALIFORNIA
A Project
Presented to
the Faculty of the School of Education
The University of Southern California
In Partial Fulfillment
of the Requirements for the Degree
Master of Science in Education
by
Robert John Lueck
June 1950
UMI Number: EP45945
All rights reserved
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UMI EP45945
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This project report, written under the direction
of the candidate’s adviser and approved by him,
has been presented to and accepted by the Faculty
of the School of Education in partial fulfillment of
the requirements for the degree of Master of
Science in Education.
Adviser
Dean
TABLE OP CONTENTS
CHAPTER PAGE
I* THE PROBLEM AND DEFINITIONS OP TERMS USED . . . 1
The Problem .......... 1
Statement of the problem................. 1
Importance of the study • • • • • • • • • • 2
Definitions of the terms used • • • • • • • . 2
Admission price .......... 2
Admission tax ........... 5
Application fpr permit ............... 3
Board 4
Business . • • • • • • • • • • • • • • • • 4
By this part • • • . . . • • • • • • • • • 5
Certificate of registry ........... 5
Concessionaire • • • • • • • • • • • • • • 5
Consumer .......... . . . 5
Contents of return ............... 6
Due d a t e ......................... . 6
Due date for admission tax • • • • • • • • 7
Employee .................................. 7
E n t i t y ..................... 7
Piling return . . . ....................... 7
Pood products ........ • • • • • • • • • • 7
Fungible goods . . • • • • • • • • • • • • 9
Gross receipts 9
lii
CHAPTER PAGE
In this state • • • • • . • • • • • • • • • • 9
Liability ............. . . . . . . . . . . . 9
Meals • . . ......... . . . . . . . . . . . . 10
Newspapers and periodicals • • • • • • • • • 10
Occasional sale • • • • • • • • • • • • • • • 11
Penalty...................................... 12
Permit fee • • • • • • • • • • • • • • • • . 13
Program............ . . . . 13
Purchase • . • • • • • • • • • • • • • • • • 13
Rate of tax . . • • • • • • • • .............. 13
Resale • • • • • • • ........................ 14
Resale certificate • • • • • •• 14
Re tail era Is? . • • . • ....................... 14
Retail sale............... ................ .. 15
Return • • • • • • • • • • • • • • 15
Sales . • • • • • • • • • • • • • • • • • • • 16
Sale p r i c e .......... * ..................... 17
Sales tax ............. 18
Season ticket . . . . . . . . . . 18
Seller • • • • • • • • • • • • • • • • • • • 18
S B E ........................................... 19
Statute of Limitations ........... . . . . . 19
Tangible personal property ......... . . . . 19
iv
CHAPTER PAGE
Trade-in • • • • » • • . • • • • • • • • • 20
Unlawful advertising • « • • • • • • • • • 20
U s e ...................................... 20
Use t a x .......... • • • • • • • • • • • • • 21
Wholesaler . . . . . . . . . . . . . . . . 21
Organization of remainder of the project • . 22
II. REVIEW OP THE LITERATURE......................... 25
III. QUESTIONS PERTAINING TO SALES, USE AND ADMIS­
SIONS T A X ........................................ 56
Sales tax • • • • • • • • • • • • • • • • • • 56
Use t a x ............................... 79
Admissions tax • • • • • • • • • • • • . « • 8A
IV. SUMMARY AND CONCLUSIONS........................... 90
Summary • • • • • • • • » • • • • • • • • • • 90
Conclusions • • • • • • • * • • • • • • • • • 100-
BIBLIOGRAPHY........................................... 106
INDEX........................................... 1055
LIST OP FORMS
FORM PAGE
Application for Seller*s Permit • • • • • • • • 30
Registration form, Department of Employment . . 31
Application for seller*s Permit . . ............... 32
Notice of Requirements ............. • • • • • 33
Statement of membership in co-partnership . • • 34
SBE Form 403 35
Use tax information return, original . • • • • 37
Use tax information return, duplicate... 38
Consumer's use tax return, original • • • • • • 39
Consumer's use tax return, duplicate • • • • • 40
Sales and use tax return, work copy • • • • • • 42
Resale certificate • • • • • • • • • • • * • • 43
Sales tax schedule • • • • • • • • • • • • • • 45
Application for registry ....................... 46
Notification to collector by lessor where lessee
is responsible for collection of federal tax
on admissions • • • • • • • • • • • • • • • • 48
Tax on admissions, dues, and cabarets, roof
gardens, etc. • • • • • • • • • • • • • • • • 49
Tax on admissions, dues, and cabarets, roof
gardens, etc., duplicate copy • • • • • • • • 50
vi
FORM PAGE
Ticket sales record • • • • • • • • • * • • • • 52
Daily record form for ticket sales • • • • • • 53
Exemption certificate • • • • • • • • • • • • • 54
LIST OP CHARTS
CHARTS PAGE
Suggested price list to be used as an aid in
collecting the sales tax from the consumer
In correct amounts • • « • • • • • • • • • 95
Sample list of items that are not subject to
the California sales and use tax • . • • . 96
Chart for admissions t a x .............. 98
Excise tax exemptions for school districts . 101
CHAPTER I
THE PROBLEM
Since 1933, when the California Sales Tax Law went into
effect, a difference of opinion has existed whether a school
district should or should not have a California Sales Tax
Permit, collect the tax on sales made by the district, and
make periodic sales reports to the California State Board of
Equalization. Following are a few of the questions that have
been bothering school administrators and business managers in
the normal transactions of the school’s business: What is a
sale? How many sales are necessary to make one a retailer?
Is it legal for the district to enter into a sales contract as
a seller? Should a school district have a California Sales
Tax Permit in case It desires occasionally to sell (for example)
some equipment that is no longer in use. This project will
try to answer some of the questions that have arisen and show
why holding a California Sales Tax Permit would help school
districts•
THE PROBLEM
Statement of the problem. Ip was the purpose of this
study (1) to answer questions regarding the California Sales