California – Use Tax Filing Date

SALT Report 1678 – The California State Legislature recently passed a bill regarding use tax reporting.  Generally, any transaction not subject to sales tax, that is stored, used, or consumed in the state is liable for use tax, and the purchaser must pay the use tax to the State Board of Equalization. Existing law requires that the purchaser must report use tax on their income tax return that is due on April 15 however, the use tax payment must be made by January 31.

Under the terms of the new bill, AB 2270 requires that the qualified use tax of an eligible purchaser is due and payable on or before April 15 following the end of the calendar year in which the use tax liability was incurred.

AB 2270 defines an “eligible purchaser” as someone who purchases taxable tangible personal property and is either:

  • Eligible to report use tax on an income tax return, but does not elect to do so; or
  • Is not required to file an income tax return and is not registered or required to be registered to report sales and use tax
Also, “qualified use tax” is defined as the amount of use tax that has not been paid to a retailer holding a seller’s permit or certificate of registration-use tax. The new legislation affects all reporting periods beginning after 2011.
For Further Information:

California State Legislature – A.B. 2270