California – Use Tax Reporting Guide

SALT Report 1410 – The California State Board of Equalization reminds residents that they must report use tax on their tax returns for all purchases made from out-of-state online and mail-order retailers or for items purchased out-of-state and then brought into California.

Beginning with calendar year 2011, the BOE and the California Franchise Tax Board are providing an easy-to-read reference guide called the Use Tax Lookup Table, to help taxpayers estimate any use tax they may owe.  The table allows individuals who are not required to hold a California Seller’s Permit or a Consumer Use Tax account, to report their use tax due based on their California Adjusted Gross Income.  The guide is only available for purchases of individual items that are less than $1,000.  Individual items that are purchased for $1,000 or more must be calculated separately. The table provides instructions for forms 540, 540A line 95, and 540EZ line 25.

The BOE estimates that the Use Tax Look-Up Table will bring in $10.6 million in revenue annually.

For Further Information:

California State Board of Equalization – News Release 18-11-G