Five Things You Need To Know About Use Tax Registration and Paying Use Tax

1.	Any person who generates $100,000 in gross receipts from business operations and who does not have a seller’s permit or is not otherwise registered to pay use tax must register with the state Board of Equalization to pay use tax. These persons and businesses are known as a “qualified purchasers.” Registration form is available here, www.boe.ca.gov/news/pdf/l232.pdf
2.	Qualified purchasers must file use tax returns for 2007, 2008, and 2009. You must file a use tax return even if you (1) already paid use tax for 2007 and 2008 or (2) did not make any out-of-state purchases for those years 2009 use tax return is due April 15, 2010 Returns must be filed electronically. To ask for an exemption from electronic filing, you must contact the BOE.
3.	Regulations applicable to dentistry are: Regulation 1506 – Miscellaneous Service Enterprises, www.boe.ca.gov/pdf/reg1506.pdf Regulation 1591 - Medicines and Medical Devices, www.boe.ca.gov/sutax/pdf/1591%20Internet.pdf
4.	More information is available on the BOE web sites. City and County Sales and Use Tax Rates, www.boe.ca.gov/sutax/pam71.htm Interest and Penalties Information, www.boe.ca.gov/sutax/sutprograms.htm Frequently Asked Questions about Sales and Use Tax, www.boe.ca.gov/sutax/faqscont.htm
5.	For forms or information, contact BOE at 800-400-7115 or a BOE district office listed here, www.boe.ca.gov/info/phone.htm. An article on sales and use tax in dentistry is available on cdacompass.com; registration and login required on the site.

March 2010