§ 1685.5. Calculation of Estimated Use Tax -- Use Tax Table.
18 CA ADC § 1685.5Barclays Official California Code of Regulations
Barclays California Code of Regulations
Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration-- Business Taxes (State Board of Equalization-- Business Taxes, See Ch. 6 and 9.9)
Chapter 4. Sales and Use Tax (Refs & Annos)
Article 17. Payment and Collection of Use Tax
18 CCR § 1685.5
§ 1685.5. Calculation of Estimated Use Tax -- Use Tax Table.
(1) Estimated Use Tax and Use Tax Table. The California Department of Tax and Fee Administration (Department) is required to annually calculate the estimated amount of use tax due according to a person's adjusted gross income (AGI) and make such amounts available to the Franchise Tax Board (FTB), by July 30 of each year, in the form of a use tax table for inclusion in the instructions to the FTB's returns.
(A) Consumers may elect to use the use tax tables included in the instructions to their FTB returns to report their estimated use tax liabilities for one or more single nonbusiness purchases of individual items of tangible personal property each with a sales price of less than one thousand dollars ($1,000) on their FTB returns. However, eligible consumers may still calculate their actual use tax liabilities using the worksheets in the instructions to their FTB returns and report their actual use tax liabilities on their FTB returns. Consumers are not required to use the use tax tables included in the instructions to their FTB returns.
(3) Safe Harbor. If eligible consumers use the use tax tables included in the instructions to their FTB returns to estimate their use tax liabilities for qualified nonbusiness purchases and correctly report their estimated use tax liabilities for their qualified nonbusiness purchases in accordance with their AGI ranges, then the Department may not assess the difference, if any, between the estimated use tax liabilities reported in accordance with the use tax tables and the consumers' actual use tax liabilities for qualified nonbusiness purchases.
(2) Use Tax Liability Factor or Use Tax Table Percentage. For the 2011 calendar year the use tax liability factor or use tax table percentage shall be 0.070 percent (.0007). On June 1, 2012, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.37, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2013, and each June 1 through June 1, 2018, the use tax liability factor or use tax table3percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.23, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2019, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.10, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2020, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.036, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2021, and each June 1 thereafter, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.03, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent.
(A) Determining the percentage, rounded to the nearest tenth of a percent, of total spending at electronic shopping and mail order houses that are not included in the following categories of items, by reference to the most current retail trade product lines statistics by kind of business data published by the United States Census Bureau:
(C) Multiplying the sum calculated in (B) by the percentage of total spending at electronic shopping and mail order houses that are not included in the categories of items listed in (A) above so that the result does not include spending on nontaxable purchases, and then rounding the result to the nearest tenth of a percent.
(6) Percentage of Income Spent on Taxable Purchases. The percentage of income spent on taxable purchases during a calendar year shall be calculated by dividing the total spending on taxable purchases for that year by the total personal income for that year, multiplying the result by 100, and rounding the result to the nearest tenth of a percent.
(C) The weighted average rate of the district taxes imposed under the Transactions and Use Tax Law (Rev. & Tax Code, § 7251 et seq.) in effect in the various jurisdictions throughout the state on January 1 of that year after taking into account the proportion of the total statewide taxable transactions (by dollar) reported for each jurisdiction during the fourth quarter of the calendar year that is two years prior to the calendar year for which the calculation is made. For example, the total reported taxable transactions (by dollar) for the fourth quarter of 2010 shall be used to determine the weighted average rate of the district tax rates in effect on January 1, 2012, to calculate the weighted average rate of district taxes for calendar year 2012.
Adjusted Gross Income (AGI) Range | Use Tax Liability |
Less Than $20,000 | $7 |
$20,000 | to | $39,999 | $21 |
$40,000 | to | $59,999 | $35 |
$60,000 | to | $79,999 | $49 |
$80,000 | to | $99,999 | $63 |
$100,000 | to | $149,999 | $88 |
$150,000 | to | $199,999 | $123 |
More than $199,999 -- Multiply AGI by 0.070% (.0007) |
Adjusted Gross Income (AGI) Range | Use Tax Liability |
Less Than $10,000 |
$10,000 | to | $19,999 | $ |
$20,000 | to | $29,999 | $ |
$30,000 | to | $39,999 | $ |
$40,000 | to | $49,999 | $ |
$50,000 | to | $59,999 | $ |
$60,000 | to | $69,999 | $ |
$70,000 | to | $79,999 | $ |
$80,000 | to | $89,999 | $ |
$90,000 | to | $99,999 | $ |
$100,000 | to | $124,999 | $ |
$125,000 | to | $149,999 | $ |
$150,000 | to | $174,999 | $ |
$175,000 | to | $199,999 | $ |
More than $199,999 -- Multiply AGI by % (.000) |
Credits
Note: Authority cited: Section 7051, Revenue and Taxation Code; Sections 15570.22 and 15570.24, Government Code. Reference: Section 6452.1, Revenue and Taxation Code.
History
1. New section filed 8-16-2011; operative 9-15-2011 (Register 2011, No. 33).
2. Amendment of subsection (a), new subsections (a)(1)-(3), amendment of subsection (b)(1), repealer and new subsections (b)(1)(A)-(H), new subsections (b)(1)(I)-(O), amendment of subsection (b)(2), new subsections (b)(5)-(b)(5)(C), subsection renumbering, amendment of newly designated subsection (b)(6) and subsections (c)(1)-(3) and (d)(2) filed 5-1-2012; operative 5-31-2012 (Register 2012, No. 18).
3. Amendment of subsection (b)(2) filed 5-28-2013; operative 7-1-2013 (Register 2013, No. 22).
4. Amendment of subsection (b)(7)(A) filed 5-13-2015; operative 7-1-2015 (Register 2015, No. 20).
5. Amendment of subsections (a)(1)-(3) and (b)(2) filed 9-12-2019; operative 9-12-2019. Pursuant to Government Code sections 11340.9(g) and 15570.40(b), this action is exempt from the Administrative Procedure Act. Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2019, No. 37).
6. Amendment of subsection (b)(2) filed 7-8-2020; operative 7-8-2020. Pursuant to Government Code section 11340.9(g) and 15570.40(b), this action is exempt from the Administrative Procedure Act. Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2020, No. 28).
7. Amendment of subsection (b)(2) and Note filed 7-13-2021; operative 7-13-2021. Pursuant to Government Code section 15570.40(b), this action is exempt from the Administrative Procedure Act. Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2021, No. 29).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 18, § 1685.5, 18 CA ADC § 1685.5
End of Document |