DO YOU OWE USE TAX IN CA?

Printer-friendly versionPrinter-friendly version Share this

 

Last-Minute Filers--Lookup Table Simplifies Paying Use Tax on Your California Return

April 11, 2015 (Sacramento)—Many Californians are not aware that they owe a use tax. Last year, an estimated $1 billion went uncollected in California use taxes – enough money to pay salaries of 6,000 firefighters, 7,000 police officers, or 11,000 teachers.

Fortunately, the amount per person is small and easy to calculate with a use tax lookup table included in your California income tax return instructions.

You may owe use tax on items used in California that you purchased online, by telephone, or by mail order from an out-of-state retailer without paying tax. Examples include toys, consumer electronics, clothing, or small appliances you use at home. Use tax is not an “Internet tax.” It has been California law since 1935.

What if you didn’t save your receipts?  No problem. Just look up your adjusted gross income range on the table, and enter the corresponding use tax amount on the use tax line that appears on your state income tax form (540 or 5402EZ). If your adjusted gross income is between $30,000 and $39,999, you would owe $12 in use tax, for instance. Use tax due on individual items of $1,000 or more must be calculated separately, however.

Last year, use tax revenues paid through California income tax returns grew about two percent, the Board of Equalization estimates.

Watch BOE’s Use Tax Public Service Announcement

For more information about Use Tax, visit this webpage.


Error message

Support community news in the public interest! As nonprofit news, we rely on donations from the public to fund our reporting -- not special interests. Please donate to sustain East County Magazine's local reporting and/or wildfire alerts at https://www.eastcountymedia.org/donate to help us keep people safe and informed across our region.

Comments

Right!

I am going to pay more taxes.