Businesses must file use tax returns by April 15. The Board of Equalization (BOE) will be sending out letters to businesses over the next few months informing them of the new registration requirement.

• A recent law change requires many businesses that do not currently hold a seller’s permit to register with the BOE, and report and pay, by April 15, any use tax due from purchases made in the preceding year.
• Taxpayers who must register will be required to file Form BOE-401-A, State, Local, and District Sales and Use Tax Return, even if they owe zero tax.

A qualified purchaser that must register with the BOE is a business that :
√ Is not required to hold a seller’s permit with the BOE;
√ Is not required to be registered, and is not otherwise registered with the BOE;
√ Is not a holder of a use tax direct payment permit; and
√ Receives at least $100,000 in gross receipts per year from business operations.

The new law applies to purchases made during the 2009 calendar year. Returns to report use tax on 2009 untaxed purchases are due on April 15, 2010.

Article provided by B.L. Pang EA. B.L. can be reached at (650) 593-7522 or email him at