Board of Equalization

• The California State Board of Equalization is the state tax authority in charge of collecting sales tax on retail items, such as furniture. While the consumer pays the tax, the retailer collects the tax, and submits the money to the Board of Equalization. In order to do this, the retailer must obtain a resale permit from the state of California. When a furniture company does business in California, it must have a resale permit. When a customer purchases furniture, the retailer adds on an additional amount to cover the tax, and then pays it the state tax authority.
  
  

Wholesale

• Not all furniture sales are immediately subject to sales tax in California. When a wholesaler or distributor sells furniture to a retailer, the retailer himself does not pay sales tax when making the purchase. The retailer's customer who eventually purchases the furniture pays the sales tax. Should the retailer fail to resell the furniture or keep it for himself, he is responsible for paying sale tax.
  
  

Furniture Company

• Just as the furniture company doesn't pay sales tax to the wholesaler when purchasing inventory, in some cases a customer buying from that furniture company may not have to pay sales tax, providing the customer shows the furniture store she has a valid California resale permit. This doesn't mean she can then use the furniture as her own, and avoid paying taxes. Unless she resells the furniture, she is responsible for paying sales tax on the purchase. In essence, it is possible for a single piece of furniture to pass from seller to buyer, and over again, without paying sales tax. Yet, eventually someone is responsible for paying the sales tax.
  
  

Used Furniture

• It is possible for a single piece of furniture to be subject to sales tax multiple times. For example, the consumer who purchases a new piece of furniture for his home in California pays sales tax on that item. If he later sells it to a used furniture store, that store will then charge sales tax on the item when it sells it to the new owner.
  
  

Delivery

• When a consumer purchases furniture in California, she might also pay tax on the delivery fee for the furniture. Normally, she won't pay tax if an independent delivery company makes the delivery, or she purchases the furniture prior to delivery, by a written contract. If the furniture includes the delivery with the purchase price, she pays tax on that amount.