ll organizations must report and pay
a "use tax
" whenever they go out of state to purchase goods where the retailer
does not charge a sales tax.
The use tax was created by the Legislature to
protect California sellers who would be at a competitive disadvantage
when out-of-state retailers sell goods to California consumers without
charging a tax. The use tax is
set at the same rate as the state's sales tax and must be paid directly
to the Board of Equalization
on the association's Franchise Tax Board Income Tax
The tax was implemented in
1935 but rarely enforced until 2006 when California formed the Interstate Consumer Analysis Team (ICAT).
: Associations needing legal assistance can contact us
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