Oroville Sales Tax: 9.25% Rate, Use Tax, and Seller Rules

The sales tax rate in Oroville, California is 9.25% as of April 1, 2026.¹ That rate applies to every taxable retail purchase inside city limits. It’s higher than the 8.25% charged in unincorporated parts of Butte County, so where you shop within the county matters.

How the 9.25% Rate Is Built

California’s statewide base rate of 7.25% applies everywhere in the state. On top of that, Oroville shoppers pay 2.00% in voter-approved district taxes.

The largest piece of the local add-on is the 1.00% Oroville Transactions and Use Tax created by Measure U, which city voters approved on November 6, 2019.² The remaining 1.00% comes from other district measures that apply across Butte County.¹

Measure U funds general city operations, including police, fire and emergency medical response, street repairs, youth and senior services, and park maintenance. The city’s finance director estimated the tax would bring in roughly $3.7 million per year. The measure has no sunset clause and stays in place until Oroville voters repeal it.²

What You Pay Sales Tax On

The 9.25% rate applies to retail sales of tangible personal property, which covers physical goods like clothing, electronics, furniture, and appliances. Several categories are treated differently.

Groceries

Most food bought for home consumption is exempt. The exemption under Revenue and Taxation Code Section 6359 covers cereals, meat, fish, eggs, vegetables, fruit, dairy, bottled water, coffee, and fruit and vegetable juices.³ The exemption drops away when food is served as a meal, sold hot, or eaten on the seller’s premises. Hot prepared food is taxable whether you eat it in the store or take it to go.⁴ Carbonated and alcoholic beverages are taxed at the full rate.

Prescriptions and Health Products

Prescription medicines dispensed by a registered pharmacist are exempt under Revenue and Taxation Code Section 6369.⁵ Over-the-counter medications remain taxable. Since January 1, 2020, menstrual hygiene products, including tampons, sanitary napkins, menstrual sponges, and menstrual cups, are also exempt.⁶

Services

Services that don’t involve transferring a physical product, such as consulting, legal advice, or accounting, aren’t subject to sales tax. The tax only applies when a tangible item changes hands.

When You Owe Use Tax on an Out-of-Area Purchase

Most online purchases shipped to Oroville already include the full 9.25%. California’s Assembly Bill 147, enacted after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, requires remote sellers with more than $500,000 in annual California sales to register with the CDTFA and collect the local tax rate based on the delivery address.⁷ Marketplaces like Amazon and eBay that meet the same threshold collect and remit the tax on sales made through their platforms.⁸

If a seller didn’t charge California sales tax, you owe use tax at the same 9.25% rate. This comes up with purchases from small out-of-state vendors below the $500,000 threshold and with private-party sales. Report it on your California income tax return using Form 540 or 540 2EZ. You can either track your actual purchases or use the CDTFA’s Use Tax Lookup Table for items under $1,000. The deadline is April 15 of the following year. Vehicles, vessels, aircraft, and mobile homes can’t go on the income tax return and must be reported directly to the CDTFA.⁹

If You Sell Goods in Oroville

Any business selling or leasing tangible goods in Oroville needs a California seller’s permit from the CDTFA before its first sale. The permit itself is free, but the CDTFA may require a security deposit based on expected taxable sales. A seller’s permit is separate from a city business license, which you handle through Oroville’s business license department. Even temporary sellers at seasonal events or flea markets lasting 90 days or less need a temporary seller’s permit.¹⁰

The CDTFA assigns a filing frequency, which can be monthly, quarterly, quarterly with prepayment, yearly, or fiscal yearly, based on your reported or expected sales.¹¹ You have to file a return for every assigned period even if you had no taxable sales. Returns go through the CDTFA’s online portal.¹²

Late payment carries a 10% penalty on the unpaid amount plus interest accruing monthly from the due date. A separate 10% penalty applies for failing to file the return on time. The combined penalty is capped at 10% of the taxes due for any single return, but the interest keeps running with no cap.¹³ The interest rate is the federal underpayment rate plus three percentage points, recalculated every six months.¹⁴ The CDTFA generally has three years to audit a business’s sales tax records, extending to eight years if the business never registered or filed.¹⁵

1
California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
2
Butte County Clerk-Recorder. Measure U City of Oroville Transactions and Use Tax
3
California Legislative Information. California Code RTC 6359 – Food Products for Human Consumption
4
California Department of Tax and Fee Administration. Regulation 1603 – Food Products
5
California Department of Tax and Fee Administration. Revenue and Taxation Code 6369 – Prescription Medicines
6
California Department of Tax and Fee Administration. Revenue and Taxation Code 6363.10 – Menstrual Hygiene Products
7
California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California Due to the Wayfair Decision
8
California Department of Tax and Fee Administration. Tax Guide for Marketplace Facilitator Act
9
California Department of Tax and Fee Administration. California Use Tax for Personal Use
10
California Department of Tax and Fee Administration. Obtaining a Seller’s Permit
11
California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns
12
California Department of Tax and Fee Administration. File a Return
13
Justia Law. California Code RTC 6591 – Interest and Penalties
14
California Department of Tax and Fee Administration. Regulation 1703 – Interest and Penalties
15
California Department of Tax and Fee Administration. Out-of-State Voluntary Disclosure Program