California – Consumers Owe Use Tax on Online Purchases

SALT Report 1715 – The California State Board of Equalization issued a use tax reminder for consumers and retailers. Effective September 15, 2012 out-of-state retailer’s with substantial nexus in California will be required to register with the State Board of Equalization and remit tax for online sales that are delivered into California.

Many consumers are unaware of the use tax obligation when making online purchases; however the new law requires out-of-state retailers to collect the tax when they make a sale rather than requiring the taxpayer to report it on their own. As a consumer, if you are not charged sales tax when you make a purchase then you are responsible for paying the use tax on your own. You can either pay online through the BOE’s eReg system or when you file your California income tax return.

For Further Information:

California State Board of Equalization – Use Tax Special Notice