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Why am I getting this rate in California?

Overview

I am using avatax to calculate sales tax on an invoice for Sacramento CA, but it is showing 8%, when it should be 8.5%

Environment

Avalara Avatax

Resolution

  • California tax rates depend on the origin and destination address in the sale:
    • Sales from outside of the state use the Destination address tax rates only
    • Sales originating within California use the tax rate of the Origin county, and the destination tax rates for all other rates (City and Special Local Jurisdictions)
    • Some services are taxed using only the destination address, check the tax code to confirm what kind of taxability is being applied to your line item
  • This means that for some sales completed within California, the tax rate on the sale will be a combination of the Origin and Destination jurisdictions, so the tax rate at the Destination address will not match the actual rate calculated on the sale.