A broker is a person who arranges transactions between patrons and sellers, and who does not have the ability or authority to transfer title of the vessel to the purchaser. A broker isn’t thought-about the retailer, and therefore just isn’t responsible for the cost of tax. If the dealer collects and reviews the proper amount of tax to the CDTFA, you don’t have any further liability. However, if the CDTFA determines that an insufficient amount of tax was collected and reported, you will be billed for the additional tax. For instance, if the dealer incorrectly collects tax primarily based on an eight p.c tax rate when the applicable tax price was really 9 percent, you’ll be billed for the extra remaining tax due.