Tax Manual A. Sales Tax Retail sales to UCI by California retailers are subject to sales tax. The obligation for the payment of California sales tax lies with the retailer, not the purchaser.
State laws require the retailer to charge sales tax to the purchaser at the time of sale.
B. Use Tax A use tax obligation arises when UCI purchases a commodity which is taxable under California State Sales and Use Tax Law, but for which the retailer has not billed, or the retailer is not licensed to collect California sales tax. The current rates for use tax are the same as for sales tax. No sales or use tax is imposed on purchases made for resale. Purchase orders that are non-taxable will indicate the UCI resale permit number. Each contract or grant and the regulations of the related agency should be reviewed to determine which purchases are subject to sales or use tax.