Certain Purchases from Pawnbrokers Not Taxable in California

Thursday, February 22nd, 2018

Pawn shop sign.

Certain Purchases from Pawnbrokers Not Taxable in California

The California Department of Tax and Fee Administration released a notice about an exclusion from tax for some purchases from pawnbrokers.

Pawning property is a way to receive a short-term loan by using property as collateral. Generally, when a person pawns property, they have a certain period of time in which they can buy the property back. After that period, the property is permanently transferred to the pawnbroker.

Under the exclusion, buying property back from a pawnbroker is not taxable if: (1) the buyback occurs within 6 months of the borrower defaulting on their loan; (2) the borrower pays the remaining unpaid balance, including interest and fees; and (3) the borrower provides proof that they paid sales tax on the original purchase.

https://www.ttrus.com/Certain Purchases from Pawnbrokers Not Taxable in California

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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