The state tax board launches an outreach campaign to educate pet sellers and collect taxes.

California pet and feed stores in April received letters from the Board of Equalization reminding them that they may be required to report and pay sales tax on their pet sales.

Pet stores, individual breeders and anyone else who sells dogs, cats or other animals commonly kept as pets must be registered with the BOE. Those that make more than two sales of pets in a 12-month period need a seller’s permit. The number of sales is measured by each individual sale, not by the number of animals sold or by litters.

Generally, sales of pets are subject to sales or use tax, unless the purchaser will resell the pets in the normal course of business and has provided the seller with a valid resale certificate, according to the BOE.

Persons located outside of California are required to register for a permit and report tax if they deliver pets into California with their own vehicles or are otherwise “engaged in business” in California.

According to the BOE, approximately $14 million in sales tax goes uncollected every year because some pet sellers are not properly reporting and paying sales tax on their pet sales.

Pet sellers who do not comply with registration and reporting obligations may be subject to penalties.

For more information, visit www.boe.ca.gov/pdf/pub122.pdf. [June 2008 PET AGE]