Guide to Reporting 
                                                                                          Out-of-State Purchases
                                                      USE TAX:

Publication 217                                        www.cdtfa.ca.gov                                         June 2024

While sales tax generally applies to the      How do I pay use tax?                       What items purchased from out-of-
sale of merchandise in the state, use 
                                              • You can report your purchase(s)           state are subject to additional excise 
tax applies to the use, storage, or other 
                                              subject to use tax on our website 
consumption of merchandise purchased                                                      taxes and fees?
                                              at www.cdtfa.ca.gov by selecting 
from outside the state. Use tax helps                                                     • Tires
                                              File & Make a Payment, then selecting 
protect California sellers who would be at                                                • Lead-acid batteries
                                              File a Return under Limited Access 
a competitive disadvantage when out-
                                              Functions, then selecting One-Time Use 
of-state retailers sell goods to California                                               • Cigarette and tobacco products
                                              Tax and/or Lumber Return. Please see 
customers without charging tax. The use                                                   • Covered electronic devices with
                                              our Online Services guide on payments 
tax is set at the same rate as the state’s                                                screens larger than four inches (such as
                                              for more information.
sales tax and must be paid directly to                                                    laptops, monitors, televisions, tablets)
the California Department of Tax and Fee      • Once you have registered, you can pay     • Lumber products
Administration or on your Franchise Tax       any use tax due by filing your return.
Board (FTB) income tax return. If one has     You can also register to report use tax     • Prepaid telephone cards
been applied to a transaction, then the       in person at any of our offices, or         If yes, in addition to reporting and paying 
other is not due.                             • Report use tax on your FTB income tax     use tax, you are also responsible for 
                                              return.                                     paying the applicable excise tax and fee 
Use tax is your responsibility.
                                                                                          to us.
Payment of use tax is generally the           Who is not eligible to report tax on the 
responsibility of the purchaser. Many                                                     How do I pay the additional excise 
                                              FTB income tax return?
out-of-state companies are “engaged in                                                    taxes and fees?
business,” or have a physical presence        The following taxpayers are required 
                                              to report purchases subject to use tax      For the purchase of new tires, lead-acid 
in California and must register with us 
                                              directly to us and may not report use tax   batteries, cigarette and tobacco products, 
to collect use tax on their retail sales 
                                              on their income tax return:                 and covered electronic devices, you are 
to California customers. Some out-of-
                                                                                          required to register for the applicable 
state companies voluntarily register with     • Businesses that have a California
                                                                                          account, file a return, and pay the 
us and collect California use tax as a        seller’s permit.
                                                                                          applicable tax or fee. For lumber products 
courtesy to their California customers. 
                                              • Businesses that are not required to       and prepaid Mobile Telephony Services, 
However, if a company is not engaged in 
                                              hold a California seller’s permit and that  you can make a one-time payment of the 
business in California, it will generally not 
                                              make more than $10,000 in purchases         amount owed. For additional information 
charge California use tax.
                                              subject to use tax (excluding vehicles,     on how to pay, please visit our website.
It is your responsibility to report and pay   vessels, or aircraft) per calendar          Please note: You may not report the 
use tax for purchases you make from           year if the use tax imposed on those        applicable excise taxes or fees on your 
out-of-state companies that don’t charge      purchases has not otherwise been paid       FTB income tax return.
you tax.                                      to a retailer authorized to collect the
                                              tax. Please see our Qualified Purchaser
                                                                                          Where do I look in my records for 
Exemptions from use tax may apply.            Program webpage for more information
Generally, the same types of items that       and additional conditions.                  these purchases?
are subject to sales tax are subject to use   • Individuals or businesses that have a     • Email receipts
tax. Use tax generally does not apply to      California consumer use tax account.        • Sales invoices
items specifically exempt from sales tax 
                                              Did you purchase from one or more of        • Your order history on the seller’s
such as prescription medicines and most 
                                                                                          website
food items purchased at a grocery store.      these common out-of-state retailers?
                                              • Internet retailer                         • Purchase orders
                                              • Television shopping network               These records will help you determine 
                                                                                          whether or not you owe California use tax 
                                              • Online auction                            or any additional excise tax or fee.
                                              • Mail order catalog
                                              If yes, you will need to check your records 
                                              to determine whether or not you paid tax.

For more information, visit our website at www.cdtfa.ca.gov. You may also call our Customer Service Center at 1-800-400-7115 
(TTY:711). Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except 
state holidays. California Department of Tax and Fee Administration, PO Box 942879, Sacramento, CA 94279-0001.