California CDTFA Publishes Sales, Use Tax Reporting, Permit Information for Dry Cleaners

The California Department of Tax and Fee Administration April 1 published sales and use tax information for dry cleaners. The publication includes: 1) generally, sales tax doesn’t apply to dry cleaners’ charges for cleaning services; 2) dry cleaners are considered consumers of supplies and materials they use in cleaning services and the tax applies to their purchases of those supplies; 3) qualified purchasers, who receive at least $100,000 in gross receipts from business operations per calendar year, are required to hold a permit to report use tax and aren’t required to hold a seller’s permit; 4) taxpayers who provide only ...