Doing Business in California — What You Need to Know (Publication 51)
Glossary of Key Terms

  • Deductions and exemptions—Sales that are specifically not taxable under the Sales and Use Tax law. (California Tax Service Center)
  • District tax—Voter-approved general or special taxes imposed by a city, county, or transit district, among others. (Local and District Tax Guide for Retailers)
  • Marketplace facilitator—A person who contracts with marketplace sellers to facilitate the sale of the marketplace sellers' products through a marketplace operated by the person or a related person. (www.cdtfa.ca.gov/industry/MPFAct.htm)
  • Recordkeeping—The method of keeping track of business transactions and activities either manually or digitally. (Merriam Webster)
  • Resale certificate—A document issued by purchasers to their vendors that indicates the items purchased will be resold in the regular course of their business operations. (Publication 103)
  • Sale—The transfer of title of tangible personal property (merchandise) for consideration. (Sales and Use Tax Law, section 6006)
  • Sales tax—A tax imposed upon the retailer (seller) on the sale of tangible personal property in California. (Sales and Use Tax Law, section 6003)
  • Seller’s permit—A state license that allows you to sell items at the wholesale or retail level and to issue resale certificates to suppliers. (Publication 107)
  • Tangible personal property—Personal property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses. (Sales and Use Tax Law, section 6016)
  • Use tax—A tax imposed on the use, storage, or other consumption of tangible personal property in California. (Sales and Use Tax Law, section 6004)

Revision January 2024