Thousands of California businesses must register with the California State Board of Equalization (BOE) to report and pay use tax.
A new use tax registration and reporting law requires qualified purchasers to file returns by April 15 of each year, reporting all purchases subject to use tax from the previous calendar year, beginning with purchases made during 2009.
Beginning in October 2009, the BOE notified 180,000 California businesses by letter that they meet the definition of a qualified purchaser, and they are required to register with the BOE because of a new registration law added to the Revenue and Taxation Code by Assembly Bill x4-18. Even if a business did not receive a letter, but meets the criteria of a qualified purchaser, they must register, file returns, and pay any use tax owed. A qualified purchaser is a business that:
Receives at least $100,000 in gross receipts per year from business operations (including both in-state and out-of-state operations);
• Is not required to hold a seller’s permit with the BOE;
• Is not a holder of a use tax direct payment permit;
• Is not required to be registered with the BOE; and
• Is not otherwise registered with the BOE to report use tax To simplify the registration process, new applicants will be automatically registered to eFile their returns for 2007, 2008, and 2009 beginning in March 2010. However, applicants who have a use tax liability and wish to file their 2007 and 2008 returns prior to the availability of eFiling should go to their local BOE office, register for a use tax account, and request paper returns. Paying 2007 and 2008 liabilities, if any, will stop interest from accruing.
For more information, visit www.boe.ca.gov.
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