BOE reminds retailers that sales of certain animals are taxable

The BOE has mailed to pet associations, pet stores, and feed stores a letter reminding them that they may be required to report and pay sales tax on their pet sales. For a copy of the letter, see http://www.boe.ca.gov/news/pdf/dot_pet_assoc.pdf.

If you have clients who are in the business of selling dogs, cats or other animals that are considered non-food animals in California, they need to register with the BOE. Non-food animals are animals commonly kept as pets or companions and are not sold for human consumption. Permit and sales tax requirements apply to pet stores and individual breeders if they make more than two sales of pets or other non-food animals in a twelve-month period. The number of sales is measured by each individual sale, not by the number of animals sold or by litters.

The BOE estimates approximately $14 million in sales tax is due but goes uncollected every year because some pet sellers are not properly reporting and paying sales tax on their pet sales.

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