Retailers engaged in business in California must register with the California Department of Tax and Fee Administration (CDTFA) and pay the state's sales tax. You must report your total gross sales for the reporting period on your sales and use tax return.The Seller's Permit will enable you to collect and pay sales tax for the items that you sell, and is required from both wholesalers and retailers. Section 21.44 (LGR2) of the Business Tax Ordinance defines retail sales as the selling of any goods, wares or merchandise for any purpose other than resale. In this video we will show you how to file a sales and use tax return with one selling location using your limited access code. This article discusses seven (7) types of seller liabilities that should concern a buyer when negotiating the purchase of a California business. The Business License Program (BLP) is regulatory in nature; it is not a tax calculated on the gross receipts of a business. If you are in the process of buying an existing business in California, take all of the steps necessary to protect yourself before closing any deal.