CA sales tax

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You are correct, jgkiefer (which unfortunately means you're wrong, ocularmagic).

The way sales tax works (pretty much everywhere in the US, I think, but definitely in CA) is that it is based on the address to which the item will be SHIPPED. Billing address means absolutely nothing. I can see logically why you would think it matters, but it doesn't.

In California, a merchant must charge CA state sales tax to all items shipped to CA addresses. Additionally, s/he must collect "district" (county) tax for all items shipped to any CA address IN WHICH THE MERCHANT HAS A SIGNIFICANT BUSINESS PRESENCE. This could be an office, warehouse, store, or whatever - basically any business presence.

For most California-based online stores, this means that we must charge state sales tax on all orders shipped to CA and district sales tax on all orders shipped within our home county.

Theoretically, the customer is liable to pay a "Use Tax" equivalent to their local sales tax if the merchant does not collect it. This applies both to customers receiving merchandise in other CA counties and also to customers in other states (unless that state has no use tax, which is rare). I don't believe that merchants are required to tell customers to pay their use tax, or we would see these notices on every website.

If you call and ask the state Board of Equalization, they'll try to confuse you into collecting district sales tax for ALL districts (even if you don't have a business presence there). You can do this, but why? It just makes for a lot of unnecessary accounting when you pay your taxes.

More info here: http://www.test.boe.ca.gov/faqs/faqpurch.htm