California Use Tax – Effective September 15, 2012

As of September 15, 2012 all California residents are required to pay California Use Tax on all purchases made from out-of-state vendors who do not charge you sales tax at the time of purchase. Typical examples of purchases would include books, electronics, computer equipment, and manufacturing equipment from various sources including the Internet, mail order catalogs, television shopping networks, and online auctions.  To find out how to register and pay use tax, see California State BOE Publication 217 which can be downloaded.

In turn, all out-of-state retailers will be considered engaged in business in California and required to register with the State Board of Equalization (BOE) to collect and remit California use tax if the retailer has a substantial nexus within California.