Financing, tax rates, and accounting
California uses a mixture of origin and destination sourcing rules. State, county and city taxes are based on the origin of the purchase (the seller), but district taxes and total tax rates are based on the destination (the buyer).
Reference #2) https://community.shopify.com/c/accounting-and-taxes/charging-california-sales-tax-incorrectly/m-p/1...
If you are a California based seller, you do not pay the California customer’s district tax until your sales reach $500,000 in one year. Until that threshold, you pay the state sales tax rate + (sometimes) your district rate. See this CDTFA link about District Sales Tax:
https://www.cdtfa.ca.gov/formspubs/pub109/
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