Tax Cooperation Program

The Sales Tax Cooperation Program is an effort where the City and your business work together for mutual benefit in allocating use (sales) tax dollars to the City of Mountain View.   As a business in the city of Mountain View, you play a vital role in fostering and creating jobs for members of our community. Mountain View aims to provide high quality services to both our residents and business community and that takes financial resources.  The Tax Cooperation program is focused on using State of California approved allocation tools to ensure when businesses are undergoing construction or purchase expansive equipment that use tax associated with those transactions is allocated to Mountain View.

This program results in:
• Your tax liability in terms of allocation errors from 3rd Party vendors being reduced
• You enhance City revenue without increasing additional tax liabilities
• Provides you the additional opportunity to publicly recognize the important contributions that you make to our community.

Process 

Businesses or firm making purchases of equipment, materials and fixtures from out of state will remit use tax to the State of California through either a:

• Direct Pay Permit (link to pdf)
• Sub Seller’s Permit- (link to pdf) Construction project. Contractors designate “Mountain View” as the first function use of the equipment.

Getting Started

Getting started with the Business Cooperation Program is simple as 1-2-3.

1. Contact the Economic Team regarding your interest in the Program BEFORE you make specific purchases of equipment or machinery.
2. The City will determine if your particular purchase is subject to use tax and works within the State approved allocation process.
3. The City will assist you with either acquiring a sub sellers permits or direct pay permit Once a sub sellers permit or direct pay permit is in place, you are now ready to accrue and remit the appropriate tax liability. 

FAQ

Is this Common in other communities?

Yes, the CA State Board of Equalization has provided the two avenues, Sub-Sellers Permit and Direct Pay Permit to allocate use tax to communities.

Is there a cost?
There is no cost to obtain a Direct Pay Permit. There is also no cost to acquire a sub seller’s permit.

Do I pay more tax?
No. You will not pay any more tax than you would normally. The difference is you accrue the liability and remit the tax instead of having a reseller accrue and remit the tax.