Tax on Water

[Angiebinck]

I started an LLC business selling private labeled bottled water to resell the water at wholesale prices. Do I need to charge my customers tax? Is there any dependency to the tax scenarios?If my customer gives the water away versus resells it? If so, when would the customer have to charge tax for a resell? I'm based in California. And I would like to know the california tax scenarios and considerations. One scenario is ua selling to a nonprofit at wholesale price so they can fundraise with it. Another scenario is we resell at special events at a higher price, and the water is sold cold., and sold individually. Another scenario is we sell wholesale to a business, so they can resell it their customers.

[rjs]

This TurboTax community is for questions about income tax. We cannot help you with sales tax. You can find information about Sales & Use Tax in California on the website of the California Department of Tax and Fee Administration.

California has many local taxing districts. The tax rate for each sale is going to depend on exactly where the sale takes place or the product is delivered.