I imported my 1098T information in both my and my child's TurboTax, and did not see any CA state sales tax obligations on either of our returns. The 1098T was useless for me because I make too much money, and it was useless to him because he makes too little. Anyway, I would be surprised if these payments are not taxed, because as we all know, everything is taxed in California..
In general a 1098T reports the amount your (or your child) paid in education expenses (i.e., Tuition). There would be no sales taxes involved.
However, a 1098T also reports the amount your child received in scholarship monies. Given certain conditions (a degree seeking student who used the money for tuition, fees, books) scholarships are usually not taxable as income. See http://www.finaid.org/scholarships/taxability.phtml for more information. In no case, would sales taxes be involved.