California Use Tax Information
| File a Use Tax Return | |
|---|---|
| The rate of use tax is determined by where the property will be used, stored or consumed, regardless of where the sale takes place. To determine the proper sales and use tax rate in your area, please see: California City and County Sales and Use Tax Rates | |
| Purchaser Type | How to Report and Pay Use Tax |
| Individual or Unregistered Service Business | If you are not required to hold a seller's permit or use tax account (see below), the easiest way to pay use tax is to report it on your California Income Tax Return found at www.ftb.ca.gov. Follow the instructions included with your income tax return. Complete the worksheet included in those instructions to determine the amount of your use tax liability. However, you may choose to report and pay use tax directly to the Board of Equalization (BOE). Simply download and complete form BOE 401-DS, State, Local, and District Consumer Use Tax Return, and mail it along with your payment to the BOE address shown on the return. |
| Seller's Permit Holder | You must report use tax under "Purchases Subject to Use Tax" (Line 2) of your sales and use tax return. See: eFile Sales and Use Tax Return or form BOE 401-A2, State, Local, and District Sales and Use Tax Return. |
| Service Business That Makes At Least $100,000 in Gross Receipts | You must pay your use tax due by efiling your annual use tax return for the previous calendar year by April 15. See: eFile Sales and Use Tax Return. |
| Frequent Purchaser of Out-of-State Goods | If you hold a consumer use tax account, you must report use tax on your use tax return. See: eFile Sales and Use Tax Return or BOE 401-E, State, Local, And District Consumer Use Tax Return. |
| Purchaser of a Vehicle, Vessel, Aircraft, or Mobilehome | Generally, you pay use tax directly to the DMV for private party sales of vehicles, and undocumented vessels. To report use tax on a mobilehome, follow the instructions in Regulation 1610.2, Mobilehomes And Commercial Coaches. To report use tax on a documented vessel, complete the use tax return found in publication 79, Documented Vessels and California Tax. To report use tax on an aircraft, complete the use tax return found in Publication 79A, Aircraft & California Tax. Your purchases of vehicles, vessels, and aircraft cannot be reported on your California state income tax return. For additional information, please see Frequently Asked Questions - Use Tax on Vehicles, Vessels, and Aircraft. |
| Purchaser of Cigarette and Tobacco Products | If the BOE receives information from an out-of-state seller regarding your purchase of untaxed cigarette and tobacco products, you will receive tax returns to report excise and use taxes. If you receive returns, you are already registered. If you have not received a tax return, you may download and print a copy of BOE-400-CIP, Cigarette and Tobacco Products Internet Program Registration. Your purchases of cigarette and tobacco products cannot be reported on your California state income tax return. |
| Purchaser of Foreign Goods | If you purchase foreign goods that do not qualify for any exclusion, you should report and pay use tax using the method based on your purchaser type as described above (individual, seller's permit holder, etc.) Please see Foreign Purchases for additional information on reporting requirements for foreign purchases. |