California – Holiday Tax Tips

SALT Report 1918 – The California State Board of Equalization issued a guide for consumers who take advantage of Black Friday and Cyber Monday sales that are offered online or through a smart phone application this holiday season. The BOE warns that use tax may be owed for many in-state purchases as well as for all purchases made through an out-of-state retailer if the item will be used in California.

For example, if an out-of-state or online retailer doesn’t collect tax for an item delivered to California, the purchaser owes use tax.  Further, the purchaser is responsible for paying use tax to the BOE, based on the tax rate for the area in which they live.

The BOE provides two ways to pay use tax for these purchases:

  • Register and pay on eReg after each purchase, or
  • As a line item on your state income taxes, using BOE’s and the Franchise Tax Board’s use tax calculation based on your adjusted gross income

Additionally, the BOE warns that all nonprofit and faith-based organizations are required to report and remit sales tax on sales of non-food items. Therefore, if these organizations hold bazaars or festivals they should apply for a temporary seller’s permit for each fundraising event.

For Further Information:

California State Board of Equalization: Holiday Tax Tips