Tax Resources
California Sales and Use Tax
California sales and use tax is a tax imposed by the State of California on the sale, lease, purchase, or use of tangible personal property and specific types of services. Caltech is required to comply with all applicable California tax laws and regulations on standard business transactions including the obligation to pay sales tax on taxable purchases, collect and remit sales tax where applicable, and self-assess use tax when suppliers do not charge California sales tax on invoices.
Although Caltech is exempt from Federal and State income tax as a 501(c)(3) entity, the exemption is not related to California sales and use tax application. Certain transactions may qualify for exemptions or reduced rates:
- Purchases made under federal contracts may be exempt when title of goods or equipment passes directly to the U.S. Government
- Qualifying manufacturing or research-related equipment purchases may be eligible for California's partial sales and use tax exemption for a reduced tax rate
For special exempt purchases, please contact Purchasing Services for assistance with the contract or purchase order.
Resources
California Partial Sales and Use Tax Eligibility Matrix
Income Tax Reporting
Accounts Payable handles all non-employee payments for the purchase of goods and services. Suppliers earning income are subject to income tax reporting and/or withholding. Caltech Payment Services complies with Federal and State regulations and issues the following information returns to our suppliers.
- IRS Form 1099-M (Federal form for US Individuals and Business Entities)
- CA FTB Form 592-B (CA State form for Nonresidents of California, Individuals and Business Entities) (Federal form for US Individuals and Business Entities)
- IRS Form 1042-S (Federal form for Nonresident Aliens and Foreign Business Entities)