Who is responsible for paying use tax?

Consumers are responsible for calculating and remitting the use tax to the government. The purpose of the use tax is to protect in-state retailers against competition from out-of-state sellers that don't have to collect sales taxes. The use tax is difficult to enforce because the onus lies on consumers to report and pay it.

What are the consequences of not paying use tax?

If you fail to report use tax, you may be subject to penalties and interest. Report use tax due on the following items directly to the CDTFA. Do not report it on your income tax return. Vehicles, vessels, and trailers that must be registered with the Department of Motor Vehicles.

What items are subject to use tax?

Purchases made by phone, web, mail, in person, and internationally are all subject to use tax. Plus the item can be reviewed long after the transaction has taken place. Since each state regulates use tax, they vary on what items are taxable or exempt. If items are intended for resale and you didn’t pay sales tax, you must pay use tax.