New Use Tax Registration Requirements

The California State Board of Equalization (BOE) announced that thousands of California qualified purchasers are now required to register with the BOE and file use tax returns by April 15 of each year, reporting all purchases subject to use tax from the previous calendar year, beginning with purchases made during the 2009 calendar year. A qualified purchaser is a business that meets all of these tests:

• Is not required to hold a seller’s permit with the BOE;
• Is not required to be registered or otherwise register with the BOE;
• Is not a holder of a use tax direct payment permit; and
• Receives at least $100,000 in gross receipts per year from business operations.

The BOE has begun notifying 184,000 businesses of this requirement by letter.

More information is available on the BOE website