California –Use Tax Obligation Reminder – Holiday Shoppers, Consumers and Business Owners

SALT Report 3197 – Cyber Shoppers, Consumers and Business Owners, use tax is due.  On November 15, 2013 the CA BOE issued News Release (NR 118-13-G) 11/15/13 to inform and remind cyber shoppers, consumers and business owners of use tax liabilities that may be owed as a result of online or remote shopping.  The News Release contains “click through” assistance leading to general explanation videos in various languages.

The CA BOE lists 3 methods a “cyber shopper” can determine how much use tax is owed and how to pay it to the state.   The three ways are listed below:

  • “Use the ePay Mobile App on an Apple or Android smartphone – the application calculates what you may owe;
  • Register and pay on the BOE website;
  • Report on your California state income tax forms: estimate the tax owed with the BOE’s Use Tax Lookup Table, or save your receipts and pay the exact amount.”

It is estimates that the state of California “loses $1 billion…each year,” in use tax not collected and Cynthia Bridges (Executive Director at the BOE) reminds us that “This is not an internet tax.  Use tax has been the law since 1935.”

Consumers or business owners with questions about use tax should seek professional assistance from your local Sales and Use Tax Professional or contact the BOE directly at www.boe.ca.gov .

For Further Information:     

News Release (NR 118-13-G) 11/15/13

Cynthia Bridges BOE Executive Director

Jaime Garza BOE External Affairs Deputy Director 12/18/11