New California Use Tax Registration Required for Small Businesses


The California State Board of Equalization (BOE), pursuant to newly added Section 6225 of the Revenue and Taxation Code, is now requiring “qualified purchasers” to register with the Board of Equalization (BOE).  In an effort to collect sales and use tax on internet and out of state purchases, this seems to be another effort by the state government to raise revenue to deal with the budget deficit.

In general, persons or businesses that collect at least $100,000 in gross receipts per calendar year and are not otherwise already registered with the BOE, must register as a “qualified purchaser”.  Additionally, qualified purchasers must then file a return and pay the associated tax for the 2009 calendar year by April 15, 2010.  Additionally, the BOE is requesting these individuals and businesses report and pay tax on purchases from 2007 and 2008 as well, which were due by January 31st of the following years, and is not offering any abatement of related penalties and interest.

The BOE has started sending registration forms and an explanatory letter to businesses throughout the state.  Following is a link to the notice and application recently received by Nienow & Company, LLP:

Please contact us if you would like assistance with registration under this plan.


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