This email is a reminder about the newly added section 6225 to the California Revenue and Taxation Code (RTC) that requires a qualified purchaser to register with the Board of Equalization (BOE) and report and pay use tax directly to the BOE by April 15^th for the preceding calendar year for purchases subject to use tax. 

Under this section, a qualified purchaser is a person who has at least $100,000 in gross receipts per year from business operations, is not required to hold a seller�s permit or a certificate of registration use tax, does not hold a use tax direct payment permit, or is not otherwise registered with the BOE for use tax.  In September 2009 we sent this link to our special notice with information regarding the new use tax registration requirements.

Under California law, if sales tax would apply when a particular item is purchased in California, use tax applies when a similar purchase is made from a retailer outside the state and no tax is charged.  Use tax is not a new tax.  It has been a part of the California RTC since the 1930�s.  Only the registration requirement is new under RTC section 6225.