CSLB Contractor's Law & Business Practice Exam

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Prepare for the CSLB Contractor's Law and Business Exam. Use flashcards and multiple choice questions, each with hints and explanations. Enhance your exam readiness!

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Where do you report and pay sales tax?

The Department of Revenue.
The State Tax Commission.
The Board of Equalization.
The Internal Revenue Service.

The correct answer is: The Board of Equalization.

The Board of Equalization is the correct agency for reporting and paying sales tax in California. This agency oversees sales and use tax administration and is responsible for collecting taxes on the sale of tangible goods and certain services. It provides guidance to businesses on how to comply with sales tax laws, including registration and filing requirements. Sales tax payments and reporting must be conducted with the Board of Equalization to ensure compliance with state tax regulations. This body offers resources and assistance for businesses to navigate the processes involved, including online systems for filing returns and making payments. The other entities mentioned focus on different tax aspects: the Department of Revenue may handle state-level tax matters in other contexts, the State Tax Commission's role can vary by state and may not specifically handle sales tax, and the Internal Revenue Service focuses on federal tax obligations rather than state sales tax issues.