Swap market sweep.

Flea-market merchants, street vendors and new store owners beware: The state is on the lookout for you.

Starting this month, the state Board of Equalization, in an attempt to crack down on sales tax evaders, is sending inspectors to stores throughout much of L.A. County to make sure they have all the proper seller's permits and are forwarding sales tax payments to the state.

The board has already sent notices to 68,000 licensed retailers for its L.A. County sweep, which will focus on the southern and eastern portions of the county.

"By identifying and registering retailers without permits, this program will reduce the sales tax gap, or the disparity between taxes owed and taxes paid," said John Chiang, chair of the state Board of Equalization. "We are committed to shrinking the tax gap and making sure all businesses pay their fair share."

As an indication of how widespread the problem is, during a recent sweep of more than 1,000 Bay Area locations, the Board of Equalization found that over 5 percent had no seller's permits or failed to report sales to the state. If a similar percentage turns up in Los Angeles County, which generates over $10 billion in sales taxes, that means some $500 million in sales taxes goes uncollected each year.

Staff reporter Howard Fine can be reached by phone at [phone], ext. 227, or by e-mail at [e-mail].