A ‘win-win’ proposal for collecting sales tax
Some of the local businesses in Seal Beach apparently did not get (or read) the memo—the one sent out in March from the State telling them to raise the local sales tax from 7.75% to 8.75% on April 1st. I say this based on my experience shopping local and using the calculator app on my phone.
Not to worry? Not quite. The City of Seal Beach has hired a sales tax auditor to ferret out non-compliance. The auditor is promised a 25% commission on any unpaid sales tax they discover. Thus, it won’t be long before a non-compliant business get a second memo with some very bad news. Instead of their customers having paid the extra 1% sales tax, the business will now have to pay it in arrears going back to April 1st.
This is not only bad news for the business, but also the City, since the auditor’s commissions reduce the expected revenue from Measure BB.
So here is a “win-win.” Shop local. Look at your receipt and double-check the sales tax with your smart phone. Politely notify businesses if they are undercharging. This will save money for both the local business and the City.
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