Sales Tax State Activity Update - November 2007
Not So Happy New Year for California Use Tax
The use tax applies when a person or business in California purchases tangible merchandise from a retailer outside of this state that will be used, consumed, given away, or stored in this state.
Currently the law allows qualified purchasers within California who are not otherwise required to hold a seller's permit to report and pay their use tax liability with a three-year statute of limitations pursuant to Revenue and Taxation Code Section 6487.06. The section of this code that allows for the three years lead way on remittance expires on December 31, 2007.
With the expiration of this code section, the statute of limitation period will lengthen to eight years.
To qualify for the In-State Voluntary Disclosure Program, you must meet the following conditions:
- You reside or are located within California, and have not previously registered with the Board of Equalization (BOE);
- You have not previously filed an Individual Use Tax Return with BOE;
- You as the purchaser, are not engaged in business in this state as a retailer, as defined in Revenue and Taxation Code Section 6015;
- You have not been contacted by the BOE for failure to report use tax imposed by Revenue and Taxation Code Section 6202;
- Your purchase is not of a vehicle, vessel, or aircraft; and
- You voluntarily come forward to BOE before December 31, 2007.
Since the In-State Voluntary Disclosure Program will no longer be available after December 31, 2007, the BOE encourages all qualified purchasers of tangible personal property to register now. The BOE may waive late filing or late payment penalties when circumstances are beyond your control. The BOE will generally recommend a waiver of penalty in cases where you can give a good reason for your failure to file which demonstrates your lack of understanding of the law and the absence of willful neglect.
The forms that you will need to submit to your nearest BOE office are: BOE-38-I, Application for In-State Voluntary Disclosure, BOE-735, Request for Relief from Penalty, and BOE-400-CSU, California Consumer Use Tax Account Application. You may obtain these forms by visiting the BOE Web Site which is www.boe.ca.gov, or by calling the BOE Information Center at 800-400-7115.
The full notice can be viewed on the California Board of Equalization Website.(Special Notice L-178, California State Board of Equalization, October 2007)
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