California – CA Media Resource: Use Tax

California Board of Equalization

“What is use tax?

Use tax is like sales tax and is generally paid on items, purchased from out-of-state retailers, that will be used in California. The applicable tax rate is usually the rate at the location where the item will be first used. Usually, this is the location where the item will be shipped.

Some out-of-state retailers, including businesses selling online, by mail order or by telephone, collect use tax and pay it to the state. Others are not required to do so. If the out-of-state retailer does not collect the use tax or does not collect the tax based on the full tax rate applicable at the location where the item will be used, the purchaser is required to pay use tax.

Use tax is not an “Internet tax.” The California use tax law became effective on July 1, 1935″…

For further information…

http://www.boe.ca.gov/taxprograms/usetax/use_tax_requirements.htm