[ChildOfThe60s]

I know in California the retailer must pay the sales tax on stolen merchandise

The writer at the link below disagrees. I always expect the worst from CA government & am rarely disappointed. But in this case, have you got anything that can verify what you said?

http://smallbusiness.chron.com/pay-sales-tax-lost-stolen-inventory-24631.html

[Navy Patriot]

From Wikipedia (https://en.wikipedia.org/wiki/Sales_tax): "In California, sales taxes are made up of various state, county and city taxes. The state tax is "imposed upon all retailers" for the "privilege of selling tangible personal property at retail." [22] Strictly speaking, only the retailer is responsible for the payment of the tax; when a retailer adds this tax to the purchase price, the consumer is merely reimbursing the retailer by contractual agreement."

The trick used is in enforcement, the state compares sales to received merchandise minus inventory, and simply claims the merchant owes $X in taxes on unreported cash sales, and bills the merchant accordingly. They will collect unless the merchant appears at audit with their tax lawyer and has complete records proving the theft took place.

At best, the merchant pays whopping legal fees. With any discrepancy in records, he pays the tax, penalties, fines and interest as well.

Tell me you didn't expect the DemoRat California State government to be honest, ethical or fair,.... please!