Sales and Use Tax Online Filing Help

Sales and Purchase Information

  1. Total Gross Sales
  2. Purchases Subject to Use Tax
  3. Sales of Fixtures and Equipment
  4. Transactions Subject to the Additional State Tax on Diesel Sales
  5. Transactions Subject to the 1% Lumber Products Assessment

Deductions

  1. Sales to Other Retailers for the Purposes of Resale
  2. Nontaxable Sales of Food Products
  3. Nontaxable Labor
  4. Sales to the United States Government
  5. Sales in Interstate or Foreign Commerce
  6. Sales Tax
  7. Bad Debt - Losses on Taxable Sales
  8. Bad Debt for Motor Vehicle Fuel (MVF) Sales
  9. Bad Debt for Diesel Fuel Sales
  10. Bad Debt on Manufacturing Equipment Sales
  11. Cost of Tax-Paid Purchases Resold Prior to Use
  12. Purchases Resold Prior to Use for Motor Vehicle Fuel (MVF) Sales
  13. Purchases Resold Prior To Use for Diesel Fuel Sales
  14. Returned Taxable Merchandise
  15. Returned Taxable Merchandise on Manufacturing Equipment Sales
  16. Tax Recovery Deductions/Adjustment
  17. Cash Discounts on Taxable Sales
  18. Cash Discounts on Manufacturing Equipment Sales
  19. Reimbursement Cost Offset for Lumber Products Assessment
  20. Other Deductions

Exemptions

  1. Amount Subject to the Teleproduction Equipment Exemption
  2. Amount Subject to the Farm Equipment Exemption
  3. Amount Subject to the Diesel Fuel Used in Farming and Food Processing Exemption
  4. Amount Subject to the Timber Harvesting Equipment and Machinery Exemption
  5. Amount Subject to the Racehorse Breeding Stock Exemption
  6. Tax Recovery - Partial Exemptions
  7. Partial State Tax Exemption for Motor Vehicle Fuel (MVF) Transactions (Gasoline)
  8. Partial State Tax Exemption on Manufacturing Equipment

Local Tax

  1. Total 1% Combined State and Local Tax as Reported
  2. Total 1% Combined State and Local Use Tax as Reported
  3. 1% combined state and local use tax for your registered California Business Location

District Tax

  1. What are district taxes?
  2. Who must pay district taxes?
  3. Enter transactions that are not in a District Tax Area
  4. Allocate District Transactions
  5. Adjustments
  6. Where can I get more information?

Net Tax

  1. Excess Tax Collected
  2. Sales or Use Tax paid to other states on the purchase of tangible personal property. The purchase price must be included in Purchases Subject to Use Tax.

Prepayments and Prior Prepayment Credits

  1. Pre-filled Tax Prepayments
  2. Prior Period Overpayment Credits Claimed
  3. How to Calculate a Prepayment

File and Pay

Preparer

  1. Preparer Name
  2. Preparer Title
  3. Preparer Phone Number

Paid Preparer

  1. Paid Preparer Name
  2. Paid Preparer Phone Number

Payment Information

  1. Payment Method
  2. Bank Routing Number
  3. Bank Account Number
  4. Payment Amount
  5. Payment Amount for Lumber Products Assessment
  6. Payment Effective Date

Sales and Purchase Information

  1. Total Gross Sales

    Enter your total taxable and nontaxable sales for the reporting period, including lease and rental receipts.

    • Report all sales (in any manner) related to California business. You will deduct nontaxable transactions on the Deduction Page.
    • Include all charges related to your sales, such as labor, service, and shipping and handling charges.
    • Your "total gross sales" may include amounts for California sales or use taxes. If this is the case, be sure to deduct those tax amounts on Deduction Page. If you do not, you will overpay tax.
  2. Purchases Subject to Use Tax

    Enter your total purchases that are subject to use tax, as explained below.

    Your purchases of merchandise, equipment, and other tangible personal property are subject to use tax and must be reported if you

    • Purchased the property from an out-of-state retailer who did not collect California use tax, or
    • Purchased the property with a resale certificate or other exemption certificate
      And
    • Used the property in California for a purpose other than (1) resale or (2) demonstration, retention, or display while holding it for sale in the regular course of business.

    You must also report your purchase of a vessel or aircraft if you (1) purchased it from an unlicensed retailer who did not charge tax on the transaction and (2) used the property for a purpose other than resale as described above.

    Enter the amount you paid for the property.

    • If you paid another state's sales or use tax on your purchase, do not include the tax payment as part of your purchase price. You may be eligible for a credit for the other state's tax (see Net Tax Page).
    • If you are reporting property purchased with a resale certificate, report the purchase price on the tax return for the reporting period during which you first used the property in California.
    • If you are reporting property purchased from an out-of-state retailer who did not charge you for California tax, report the purchase price on the tax return for the reporting period during which you first used the property in California.
  3. Sales of Fixtures and Equipment

    Enter any business assets sold, such as fixtures and equipment or inventory retained.

    • If you sold any business assets, such as fixtures and equipment, during the reporting period, you must report the sale.
    • If you are closing out your seller's permit and have sold fixtures and equipment, you should report the sales price.
    • You must also report any inventory you intend to retain for your own use or for use as a gift, that was purchased for resale without the payment of tax or tax reimbursement. Sales of inventory to another retailer or to the purchaser of your business are not taxable, but should be reported as "Sales for Resale" on the Deduction Page. A resale certificate should be obtained from the buyer and saved in your records. For more detailed information, see publication74, Closing Out Your Seller's Permit.
  4. Transactions Subject to the Additional State Tax on Diesel Sales

    Effective July 1, 2011 and each July 1 through 2014, the statewide sales and use tax rate imposed on sales of diesel fuel will change. The table below shows the changes to the applicable tax rates for the specified period dates:

    July 1, 2011 – June 30, 2012 July 1, 2012 – June 30, 2013 July 1, 2013 – June 30, 2014 Effective July 1, 2014
    Sales and Use Tax Rate for Diesel Fuel 1.87% 2.17% 1.94% 1.75%

    Enter the amount of sales of diesel fuel under the correct period(s). The amount entered should not include any sales tax or state excise tax on diesel.

  5. Transactions Subject to the 1% Lumber Products Assessment

    Enter your sales and purchases of lumber products or engineered wood products made on or after January 1, 2013, as explained below.

    If you sell lumber products and engineered wood products you are required to charge and collect the 1% assessment on your sales of these products to purchasers who will use the products in this state.
    Do not include your sales for resale of lumber or engineered wood products.

    Your purchases of lumber or engineered wood products are subject to the 1% assessment if you:

    • Purchased the lumber or engineered wood products for use in California from an out-of-state retailer who did not collect the 1% assessment, or
    • Purchased the lumber or engineered wood products with a resale certificate or other certificate, and
    • Used the lumber or engineered wood products in California for a purpose other than (1) resale, or (2) demonstration, retention, or display while holding it for sale in the regular course of business.

    See Lumber Products Assessment for additional information.


Deductions

  1. Sales to Other Retailers for the Purposes of Resale

    Enter your total sales to other sellers who submitted resale certificates to you for their purchases.

    This transaction is not subject to tax and will be subtracted from the amount entered on the Total Gross Sales line. You cannot claim a deduction for a transaction unless it has been reported on the Total Gross Sales or Purchases Subject to Use Tax lines on the Sales and Purchase Information Page on this Return or a previous return. If you did not report the original sale, you cannot claim a deduction. You must maintain records that support all claimed deductions.

    • In general, you can accept resale certificates from other sellers who are buying property to resell in the regular course of business. If you obtain a timely and valid resale certificate, taken in good faith, tax will not apply to your sale.
    • To be valid, resale certificates must contain specific information. For more information, see Regulation 1668, Sales for Resale. You can verify the validity of seller's permits by calling the Board's Seller's Permit Verification service at 1-888-225-5263 or by visiting our website, www.boe.ca.gov.
  2. Nontaxable Sales of Food Products

    Enter your nontaxable sales of food products sold for human consumption.

    This transaction is not subject to tax and will be subtracted from the amount entered on the Total Gross Sales line. You cannot claim a deduction for a transaction unless it has been reported on the Total Gross Sales or Purchases Subject to Use Tax lines on the Sales and Purchase Information Page on this Return or a previous return. If you did not report the original sale, you cannot claim a deduction. You must maintain records that support all claimed deductions.

    • Whether food product sales are taxable depends on many conditions, including who makes the sale, where the sale occurs, who the customer is, and what is sold. For example, the following sales are generally taxable and should not be deducted:
      • Sales of alcoholic and carbonated beverages
      • Sales of hot prepared food products
      • Sales of meals or food sold for consumption at your place of business or sold for consumption in a place where admission is charged.
    • For more information on food sales see Regulation 1602, Food Products, or Regulation 1603, Taxable Sales of Food Products. Vending machine operators should see Regulation 1574, Vending Machine Operators.
  3. Nontaxable Labor

    Enter charges for installing premanufactured property or for repairing or reconditioning property to restore it to its original use.

    This transaction is not subject to tax and will be subtracted from the amount entered on the Total Gross Sales line. You cannot claim a deduction for a transaction unless it has been reported on the Total Gross Sales or Purchases Subject to Use Tax lines on the Sales and Purchase Information Page on this Return or a previous return. If you did not report the original sale, you cannot claim a deduction. You must maintain records that support all claimed deductions.

    • Labor charges for making or fabricating a new product (such as labor charges for making a ring or furniture), or for assembling a product, are generally taxable and should not be deducted. Tax applies even if your customer provides the property that you fabricate.
    • For more information see Regulation 1546, Installing, Repairing, Reconditioning in General.
  4. Sales to the United States Government

    Enter sales made to:

    • The United States government or its unincorporated agencies and instrumentalities, such as the following federal departments: Treasury, Interior, Agriculture, or Defense
    • Any incorporated agency or instrumentality of the United States wholly owned by either the United States, or by a corporation wholly owned by the United States
    • The American Red Cross, its chapters and branches
    • Federal Reserve banks, federal credit unions, federal land banks, and federal home loan banks.

    This transaction is not subject to tax and will be subtracted from the amount entered on the Total Gross Sales line. You cannot claim a deduction for a transaction unless it has been reported on the Total Gross Sales or Purchases Subject to Use Tax lines on the Sales and Purchase Information Page on this Return or a previous return. If you did not report the original sale, you cannot claim a deduction. You must maintain records that support all claimed deductions.

    • Sales made to the State of California or to cities and counties and local governments in the state are generally taxable and should not be deducted. They are treated like any other sale.
    • For more information see Regulation 1614, Sales to the United States and Its Instrumentalities.
  5. Sales in Interstate or Foreign Commerce

    Enter sales that are exempt from tax as interstate or foreign commerce (sales involving shipments or deliveries from California to points outside this state).

    This transaction is not subject to tax and will be subtracted from the amount entered on the Total Gross Sales line. You cannot claim a deduction for a transaction unless it has been reported on the Total Gross Sales or Purchases Subject to Use Tax lines on the Sales and Purchase Information Page on this Return or a previous return. If you did not report the original sale, you cannot claim a deduction. You must maintain records that support all claimed deductions.

    • For a sale to be exempt, the sales agreement or contract must require the property to be shipped to an out-of-state point, and you must either
      • Use your company vehicle (or other conveyance operated by your business) to ship the property to that location, or
      • Deliver the property to a carrier, customs broker, or forwarding agent for shipment outside this state.
    • For more information see Regulation 1620, Interstate and Foreign Commerce.
  6. Sales Tax

    Enter an amount on this line only if the amount you reported on the Total Gross Sales line on the Sales and Purchase Information Page includes California sales or use taxes. Enter only the tax amounts that are included on the Total Gross Sales line.

  7. Bad Debt - Losses on Taxable Sales

    Enter bad debt losses, as described below.

    • If you have reported a taxable sale and have been unable to collect payment for the sale, you may take a deduction for the bad debt.
    • Bad debts may take the form of
      • Checks that have been returned to you unpaid by the purchaser's bank and which you have determined to be uncollectible, or
      • Amounts from charge or credit sales that you have determined to be uncollectible.
    • The bad debts must be charged off for income tax purposes, or, if you are not required to file income tax returns, the bad debts must be charged off in accordance with generally accepted accounting principles.
    • Enter only the amount of the sale before tax. For example, if you sold merchandise for $15 plus sales tax and were unable to collect any amount for the sale, you would claim $15 as a deduction.
    • If you claim a bad debt deduction and later recover payment, you must report the payment on the tax return filed for the period in which the recovery payment was made.
    • You must adjust the amount you report for transactions that occurred during a period when the state or county tax rates were different than the current rates. For tax rates see California City and County Sales and Use Tax Rates.
    • For more information see Regulation 1642, Bad Debts.
  8. Bad Debt for Motor Vehicle Fuel (MVF) Sales

    Enter the amount of bad debt(s) from the sales of Motor Vehicle Fuel (MVF) on or after July 1, 2010. Do not include the sales tax collected in the amount claimed. This amount will automatically be populated to the exemption schedule to properly adjust the measure of sales tax due.

  9. Bad Debt for Diesel Fuel Sales

    Enter the amount of bad debt from the sales of diesel fuel on or after July 1, 2011. Do not include the sales tax collected. This amount will automatically be populated to the exemption schedule to properly adjust the measure of sales tax due.

  10. Bad Debt on Manufacturing Equipment Sales

    Enter the amount of bad debt(s) from the sales of manufacturing equipment on or after July 1, 2014. Do not include the sales tax collected. This amount will automatically be populated to the exemption schedule to properly adjust the measure of sales tax due.

  11. Cost of Tax-Paid Purchases Resold Prior to Use

    Enter cost of tax-paid purchases resold prior to use as described below.

    This transaction is not subject to tax and will be subtracted from the amount entered on the Total Gross Sales line. You cannot claim a deduction for a transaction unless it has been reported on the Total Gross Sales or Purchases Subject to Use Tax lines on the Sales and Purchase Information Page on this Return. If you did not report the original sale, you cannot claim a deduction. You must maintain records that support all claimed deductions.

    • You may claim a deduction on this line if you
      • Paid California sales or use tax when purchasing goods or merchandise, and
      • Sold the property without first using it (other than retaining, demonstrating, or displaying it while holding it for sale in the regular course of business).
    • Enter only the amount of the purchase price before tax. For example, if the property was sold to you for $15 plus tax, you would claim only $15 as a deduction.
    • You must take this deduction in the reporting period during which you made the sale (otherwise, you must file a claim for refund of the tax).
    • You must adjust the amount you report for purchases that occurred during a period when the state or county tax rates were different than the current rates. For tax rates see California City and County Sales and Use Tax Rates.
    • For more information see Regulation 1701, Tax-Paid Purchases Resold.
  12. Purchases Resold Prior to Use for Motor Vehicle Fuel (MVF) Sales

    Enter the sales amount for tax-paid Motor Vehicle Fuel (MVF) that was resold prior to use on or after July 1, 2010. Do not include the amount of sales tax paid in the amount claimed. This amount will automatically be populated to the exemption schedule to properly adjust the measure of sales tax due.

  13. Purchases Resold Prior To Use for Diesel Fuel Sales

    Enter the sales amount for tax-paid Diesel Fuel that was resold prior to use on or after July 1, 2011. Do not include the amount of sales tax paid in the amount claimed. This amount will automatically be populated to the exemption schedule to properly adjust the measure of sales tax due.

  14. Returned Taxable Merchandise

    Enter amounts you credited or refunded to customers for returned taxable merchandise, as described below.

    This transaction is not subject to tax and will be subtracted from the amount entered on the Total Gross Sales line. You cannot claim a deduction for a transaction unless it has been reported on the Total Gross Sales or Purchases Subject to Use Tax lines on the Sales and Purchase Information Page on this Return or a previous return. If you did not report the original sale, you cannot claim a deduction. You must maintain records that support all claimed deductions.

    • You can take this deduction only if
      • You returned or credited to your customer the full sales price, including sales tax charges, and
      • The customer, in order to obtain the refund or credit, is not required to purchase other property at a price greater than the amount charged for the property returned.
    • Claim only the amount of the sale before tax. For example, if the returned merchandise had been sold for $15 plus sales tax, you would claim only $15 as a deduction.
    • You must adjust the amount you report for transactions that occurred during a period when the state or county tax rates were different than the current rates. For tax rates see California City and County Sales and Use Tax Rates.
    • For more information see Regulation 1655, Returns, Defects and Replacements.
  15. Returned Taxable Sales on Manufacturing Equipment

    Enter the amount you credited or refunded to customers for returned taxable merchandise on the sales of manufacturing equipment on or after July 1, 2014. Do not include the sales tax. This amount will automatically be populated to the exemption schedule to properly adjust the measure of sales tax due.

  16. Tax Recovery Deductions/Adjustment

    If the original transaction(s) (or any portion of them) occurred prior to January 1, 2013, please enter the amount in the field provided. Due to the statewide ¼% tax increase on January 1, 2013, claiming a tax recovery deduction (Bad Debts, Cost of Tax Paid Purchases Resold Prior to Use, or Returned Merchandise) for the period prior to January 1, 2013 will result in a ¼% tax recovery adjustment.

    This adjustment is necessary to ensure that you get the proper credit for the tax amount you previously paid on the original transaction(s).

    For example:
    A piece of equipment originally sold for $10,000 and sales tax of $725.00 (7.25%) was collected and paid to the BOE. The merchandise was returned after the tax rate increase of January 1, 2013. In order to recoup the $725.00 sales tax paid, you would take a returned merchandise deduction for $10,000 in the next return period. Because of the tax rate change, your sales tax credit would be calculated at the higher rate (7.50%) resulting in a credit of $750.00 rather than the $725.00 you had previously paid. The return will be adjusted by adding ¼% of the $10,000 ($25) back into the amount due. The amount will appear on your review and confirmation pages as a “Tax Recovery Adjustment.”

  17. Cash Discounts on Taxable Sales

    Enter the amount of the cash discount you gave a customer on a taxable sale.

    • You can claim a deduction on this line only if you reported the full (undiscounted) selling price on the Total Gross Sales line on the Sales and Purchase Information Page. Do not use this line if you reported the discounted selling price on the Total Gross Sales on this return or a previous return. In addition, you must ensure that you do not collect from your customer more tax than the amount due on the discounted price. If you collect more than the amount due on the discounted price, you cannot claim this deduction.
    • You must adjust your total for this line if any of the transactions occurred during a period when the state or county tax rates were different than the current rates. For tax rates see California City and County Sales and Use Tax Rates.
    • For more information see Regulation 1671, Trading Stamps and Related Promotional Plans and/or Regulation 1700, Reimbursement for Sales Tax.
  18. Cash Discounts on Manufacturing Equipment Sales

    Enter the amount of cash discount you gave a customer on the sales of manufacturing equipment on or after July 1, 2014. Do not include the sales tax. This amount will automatically be populated to the exemption schedule to properly adjust the measure of sales tax due.

  19. Reimbursement Cost Offset for Lumber Products Assessment

    Enter the amount of reimbursement cost as explained below:

    If you are a retailer required to collect the 1% lumber products assessment, you may retain $250 per retail location for start-up costs. You may claim an offset for start-up costs up to the amount of the lumber products assessment reported (computed as lumber transactions × 1%). Any remaining allowable start-up cost may offset your reported lumber products assessment on subsequent returns until the allowable reimbursement cost ($250 × the number of retail locations) is taken.

    A location is the business location registered under the retailer's seller's permit as of January 1, 2013, where lumber or engineered products subject to the assessment are sold. If you started your business or opened a location after January 1, 2013, you cannot retain reimbursement for that location.

    See Emergency Special Tax Regulation 2000, Retailer Reimbursement Retention

  20. Other Deductions

    Select a description of your deduction from the drop down menu or type in the description on one of the free form text lines.

    Enter the amount of your deduction.

    • Examples of transactions that may be deductible include the following:
      • Sales by pharmacists of prescription medicines for use by humans. For more information see Regulation 1591, Medicines and Medical Supplies, Devices and Appliances.
      • Transportation charges for delivering goods to a purchaser by an independent carrier (the transportation charges must be separately stated on the invoice). If you charge more for delivery than your actual costs, the added amount is subject to tax and cannot be deducted. For more information see Regulation 1628, Transportation Charges.
      • Sales of animals, seeds, plants and fertilizer, used as, or used to produce, food for human consumption. For more information see Regulations 1587, Animal Life and Feed, and 1588, Seeds, Plants and Fertilizers.
    • For more information see publication 61, Sales and Use Taxes: Exemptions and Exclusions.

Exemptions

  1. Amount Subject to the Teleproduction Equipment Exemption

    Enter amount subject to the exemption.

    This transaction is exempt from the state portion of the total sales and use tax rate. It remains subject to 2.00 percent of the total sales and use tax rate, representing local, city, and county taxes. It is also subject to any applicable district taxes.

    Retailers who wish to claim a partial exemption must timely obtain from purchasers a valid exemption certificate as described in Regulation 1667. The Board has designed a specific certificate for this purpose, entitled "Certificate of Partial Exemption." Retailers must retain the completed certificate for a period of not less than four years.

    Complete this line to claim an exemption for sales or purchases made by qualified persons of tangible personal property used primarily

    • In teleproduction or other postproduction services for film or video that include editing, film and video transfers, transcoding, dubbing, subtitling, credits, close captioning, audio production, special effects (visual or sound), graphics, or animation, or
      • With respect to property with a useful life of at least one year, to maintain, repair, measure, or test property used primarily in teleproduction or other postproduction services.
      • A qualified person is a business that is primarily engaged in providing the specialized motion picture or video postproduction services described above.
    • A qualified purchaser must provide the retailer with a Section 6378 Exemption Certificate; otherwise, the exemption will not be allowed.
    • This exemption does not apply to the sale or use of any tangible personal property that is used primarily in administration, general management, or marketing (used 50 percent or more of the time in one or more of those activities).
    • For more information see Regulation 1532, Teleproduction or Other Postproduction Service Equipment.
  2. Amount Subject to the Farm Equipment Exemption

    Enter amount subject to the exemption.

    This transaction is exempt from the state portion of the total sales and use tax rate. It remains subject to 2.00 percent of the total sales and use tax rate, representing local, city, and county taxes. It is also subject to any applicable district taxes.

    Retailers who wish to claim a partial exemption must timely obtain from purchasers a valid exemption certificate as described in Regulation 1667. The Board has designed a specific certificate for this purpose, entitled "Certificate of Partial Exemption." Retailers must retain the completed certificate for a period of not less than four years.

    • Complete this line to claim a partial exemption for the sale, storage, use or other consumption of qualified farm equipment, machinery and their parts, as described below. It also applies to qualified lease payments for farm equipment and machinery rentals payable on or after September 1, 2001.
    • Who can claim a partial exemption?
      You can claim this partial exemption if you are a person engaged in an agricultural business described in Codes 0111 to 0291 of the Standard Industrial Classification (SIC) Manual or are a person that assists such classified person by performing an agricultural service described in Codes 0711 to 0783 of the SIC manual
    • What type of equipment is eligible?
      The partial exemption applies to:
      • "Implements of husbandry," as defined in Revenue and Taxation Code section 411. Such property generally includes any tool, machinery, equipment, appliance, device or apparatus. The farm equipment, machinery, and parts must be used primarily in producing and harvesting agricultural products. "Primarily" means 50 percent or more of the time.
      • Property as defined in Chapter 1, Division 16 of the Vehicle Code used exclusively in agricultural operations. Such property under certain conditions, includes lift carriers, tip-bed type trailers, trailers/semi-trailers having no bed, spray or fertilizer applicator rigs, nurse rigs or equipment auxiliaries, row dusters, trap wagons, fertilizer nurse tanks or trailers, cotton trailers, truck tractors and truck tractor/semi-trailer combinations. Vehicles primarily designed for the transportation of persons or property on a highway are generally not considered implements of husbandry and, therefore, do not qualify for this partial exemption.
      • A qualified purchaser must provide the retailer with a Farm Equipment Exemption Certificate; otherwise, the exemption will not be allowed.
    • For more information see Regulation 1661.
  3. Amount Subject to the Diesel Fuel Used in Farming and Food Processing Exemption

    Enter amount subject to the exemption.

    This transaction is exempt from the state portion of the total sales and use tax rate. It remains subject to 2.00 percent of the total sales and use tax rate, representing local, city, and county taxes. It is also subject to any applicable district taxes.

    Retailers who wish to claim a partial exemption must timely obtain from purchasers a valid exemption certificate as described in Regulation 1667. The Board has designed a specific certificate for this purpose, entitled "Certificate of Partial Exemption." Retailers must retain the completed certificate for a period of not less than four years.

    • Complete this line to claim a partial tax exemption for the sale, storage, use, or other consumption of diesel fuel used in farming or food processing activities.
    • The diesel fuel must be consumed during the activities of a farming business as set forth in Internal Revenue Code (IRC) 263A or food processing. A farming business is a business that grows crops, fruit- or nut-bearing trees, sod, or nursery plants. Farming activities also include transporting these crops, fruit or nut bearing trees, sod, or nursery plants to the marketplace.
    • A qualified purchaser must provide the retailer with a Diesel Fuel Used in Farming and Food Processing Partial Exemption Certificate; otherwise, the exemption will not be allowed.
    • For more information see Regulation 1533.2.
  4. Amount Subject to the Timber Harvesting Equipment and Machinery Exemption

    Enter amount subject to the exemption.

    This transaction is exempt from the state portion of the total sales and use tax rate. It remains subject to 2.00 percent of the total sales and use tax rate, representing local, city, and county taxes. It is also subject to any applicable district taxes.

    Retailers who wish to claim a partial exemption must timely obtain from purchasers a valid exemption certificate as described in Regulation 1667. The Board has designed a specific certificate for this purpose, entitled "Certificate of Partial Exemption." Retailers must retain the completed certificate for a period of not less than four years.

    • Complete this line to claim a partial exemption of the sales and use tax for the sale, use, or other consumption of timber harvesting equipment, machinery, and their parts. Such equipment and machinery must be designed for use 50 percent or more of the time off-road in commercial timber harvesting and be used 50 percent or more of the time in timber harvesting. A qualified person is a person who is engaged in commercial timber harvesting. Commercial timber harvesting involves the cutting or removal, or both, of timber and other solid wood forest products from timberlands for commercial purposes. The partial exemption also applies to a qualified person's lease payments for qualified commercial timber harvesting equipment and machinery rentals payable on or after September 1, 2001.
    • Timber is considered to be trees of any species, excluding nursery stock, harvested for forest products. These products include firewood, Christmas trees, poles and pilings, biomass, and so forth.
    • Typical off-road commercial harvesting equipment and machinery and their general use, that may be eligible for this partial exemption include:
      • Tractors or rubber tired skidders - move the logs from the woods to the logging trucks
      • Front end loaders - load logs onto trucks
      • Feller-bunchers - cut very small trees.
      • Cable Yarders - harvest trees on very steep slopes by suspending the logs on a cable
      • Chippers - chip small logs and brush into very small pieces
      • Chainsaws - used to cut down trees.
    • A qualified purchaser must provide the retailer with a Timber Harvesting Equipment and Machinery Partial Exemption Certificate; otherwise, the exemption will not be allowed.
    • For more information see Regulation 1534.
  5. Amount Subject to the Racehorse Breeding Stock Exemption

    Enter amount subject to the exemption.

    This transaction is exempt from the state portion of the total sales and use tax rate. It remains subject to 2.00 percent of the total sales and use tax rate, representing local, city, and county taxes. It is also subject to any applicable district taxes.

    Retailers who wish to claim a partial exemption must timely obtain from purchasers a valid exemption certificate as described in Regulation 1667. The Board has designed a specific certificate for this purpose, entitled "Certificate of Partial Exemption." Retailers must retain the completed certificate for a period of not less than four years.

    • Complete this line to claim a partial exemption of the sales and use tax for the sale, storage, use, or other consumption of "racehorse breeding stock."
    • "Racehorse breeding stock" means racehorses capable of and purchased solely for the purpose of breeding.
    • A qualified purchaser must provide the retailer with a Racehorse Breeding Stock Partial Exemption; otherwise, the exemption will not be allowed.
    • For more information see Regulation 1535.
  6. Tax Recovery - Partial Exemptions

    If you are claiming a Bad Debt or Returned Merchandise deduction related to a past partially exempt transaction, enter the amount of the transaction as a negative amount in this field. This negative amount must be added to your current period transactions and the entered in the total transactions field provided.

  7. Partial State Tax Exemption for Motor Vehicle Fuel (MVF) Transactions (Gasoline)

    MVF sales on or after July 1, 2010 are exempt from the state portion of the sales tax. Enter the amount of sales of Motor Vehicle Fuel (MVF) on or after July 1, 2010. The amount entered must not include any sales tax.

  8. Amount Subject to the Manufacturing Equipment Exemption

    Enter amount subject to the manufacturing equipment exemption on or after July 1, 2014.
    This transaction is exempt from the state portion of the total sales and use tax rate. It remains subject to 3.3125 percent of the total sales and use tax rate, representing local, city, and county taxes. It is also subject to any applicable district taxes.

    • Complete this line to claim a partial state tax exemption for the sale, storage, use, or other consumption of qualified manufacturing and research and development equipment, as describe below.
    • Generally, qualified property includes:
      • Machinery and equipment, including component parts and contrivances.
      • Equipment or devices used or required to operate, control, regulate, or maintain the machinery.
      • Tangible personal property used in pollution control that meets established state or local government agency standards.
      • Special purpose buildings and foundations used as an integral part of the manufacturing process, or that constitute a research or storage facility. Buildings used solely for warehousing do not qualify.

     

    • To be eligible, the property must be purchased for any of the following uses:
      • Manufacturing, processing, refining, fabricating, or recycling of tangible personal property.
      • Research and development in biotechnology, engineering, physical sciences, or life sciences.
      • To maintain, repair, measure or test property listed in 1 or 2 above.
      • By a contractor, purchasing property for use in the performance of a construction contract for a qualified person, who will use the property as part of the manufacturing, processing, refining, fabricating, or recycling process, or in research and development.
    • For more information see Regulation 1525.4.

Local Tax

  1. Total 1% Combined State and Local Tax as Reported

    This amount must be allocated to the local tax allocation schedules. If you receive either Schedule B - Detailed Allocation by County or Schedule C - Detailed Allocation by Sub outlet the entire amount must be allocated to the schedule you receive. If you receive both Schedule B and Schedule C than the total allocated to both schedules must equal the amount on this line.

  2. Total 1% Combined State and Local Use Tax as Reported

    Based upon your business activities, part or all of your state and local use tax associated with your purchases should be allocated among the counties listed on Schedule E, Detailed Allocation by County of 1% Combined State and Uniform Local Use Tax to the county of use. Enter the amount of 1% combined state and local use tax in the county when the place of consumption is not your registered place of business in California.

    If you are a construction contractor, you must report the combined state and local use tax with respect to materials installed in a construction contract according to the county location of the jobsite where use occurred. Enter the amount of combined state and local use tax in the appropriate county of jobsite.

  3. 1% combined state and local use tax for your registered California Business Location

    The 1% combined state and local use tax for your registered California Business Location represents the amount of state and local use tax associated with purchases consumed at your registered California business location. This amount does not include the combined state and local use tax you allocated to the counties listed on Schedule E, Detailed Allocation by County of 1% Combined State and Uniform Local Use Tax.  If your business address has changed, please contact your district office to update your location information. Enter the amount of combined state and local use tax for purchases consumed at your registered California business location.


District Tax

  1. What are district taxes?

    District taxes are voter-approved taxes levied under the Transactions and Use Tax Law. Most, but not all, apply countywide (for example, the Bay Area Rapid Transit District encompasses three counties). Many district taxes are imposed by entities specially formed to levy the tax and administer the proceeds (for example again, the Bay Area Rapid Transit District), but some are levied directly by counties (for example, the Santa Clara County General Fund District), and an increasing number are levied by cities (for example, Town of Truckee Road Maintenance Transactions and Use Tax).

  2. Who must pay district taxes?

    In general, you must report and pay district transactions (sales) and use taxes if you

    • Are a retailer located in the district and your merchandise is sold and delivered within the district
    • Are a retailer located outside the district who is engaged in business in the district and you sell merchandise for use in the district. You are considered to be engaged in business in the district if you (1) have any type of business location there, (2) deliver into the district using your own vehicles, or (3) have an agent or representative in the district who makes sales, takes orders, or makes deliveries
    • Are a dealer of vehicles, vessels, or aircraft, and you sell those items to persons who will register them in the district
    • Collect tax on lease payments you receive for leased property used by the lessee in the district
    • Purchase goods and merchandise without payment of the district tax and use the property in the district for a purpose other than for (1) resale or (2) demonstration, retention, or display while holding it for resale in the regular course of business.
  3. Enter transactions that are not in a District Tax Area

    Enter the total amount of transactions that are not subject to district tax.

    Transactions, which are not subject to district tax, will be subtracted from Amount on Which Local Tax Applies line.

    • Sales of property delivered to customers at a location where there is no district tax in effect, for use in that location (for example, property delivered to Alpine County, which has no special tax districts).
    • Sales of property (other than vehicles, aircraft, and vessels) delivered to customers at a district where you are not engaged in business, for use in that district.
    • Purchases consumed at a location where there is no district tax in effect.
    • For more information see "Who must pay district taxes?"
  4. Allocate District Transactions

    Enter your transactions by the correct districts.

    • Example. If your total on the amount of district transactions line showed $3,000 and all transactions were subject to district tax in Los Angeles County, you would enter $3,000 next to "LOS ANGELES Co." in the Allocate Sales to Districts column. If the $3,000 total on the District Transactions line represented $2,000 in sales for Los Angeles County and $1,000 in sales for Orange County, you would enter the $2,000 and $1,000 next to the appropriate counties.

    Special reporting requirements for cities imposing a district tax:

    • The tax rate for city district taxes include all county district taxes. Report transactions within a city and county in the city only. For example, transactions subject to the City of Manteca district tax (.050%) are also subject to the San Joaquin County tax (.050%). Report all transaction for both districts under the City of Manteca only. Notice the total tax rate for the City of Manteca is 1.0% which consists of the 0.50% San Joaquin County tax rate plus the 0.50% City of Manteca tax rate.
  5. Adjustments

    Enter the amount only for those districts that require an adjustment.

    • Entries on this line will increase or decrease the amount of tax distributed to a district. Make entries only for those districts that require an adjustment. There does not need to be an entry in the Allocate Sales to Districts Column in order to make an adjustment in the Adjustments column.
    • Add the following
      • Claimed deductions that were taxed at a lower rate than the current rate. If you claimed a deduction on the front of your return for bad debts, tax-paid purchases resold, returned merchandise, or cash discounts and if those transactions were originally taxed at a lower rate than the current rate, add the total for those transactions (by district).
      • Items you purchased without paying district tax. If you purchased goods on which you paid state and local tax but did not pay district tax to the vendor, and if you made a taxable use of the property in a tax district, add the price of the goods for that district.
      • Amounts collected for a discontinued district. If you collected taxes for a district that has been discontinued and have not paid those taxes to the Board, add the amounts on which those taxes were collected. Do not enter those amounts on Allocate Sales to Districts Column. If a discontinued district is not listed, for assistance call 1-800-400-7115 (TTY: 711).
    • Deduct the following
      • Transactions included in the Allocate Sales to Districts Column that represent the sale or use of property occurring prior to the effective date of a district.
      • Fixed-price contracts. Deduct the sales price or lease payments (excluding amounts collected as tax) for qualifying fixed-price contracts. A fixed-price contract is one entered into prior to the effective date of the district tax, which (1) fixes the amount of the sales or lease price and (2) specifically states the amount or rate of tax based on the rate in effect when the contract was executed. Neither party to the contract may have the right to terminate the contract upon notice. (See Regulation 1661 for information on leases of mobile transportation equipment.)
      • Property used outside the district. If you paid district tax on a purchase and first used the property in a different district, you may need to enter adjustments in the Adjustments column. For assistance call 1-800-400-7115 (TTY: 711).
      • Discontinued districts. Deduct that portion of the nontaxable transactions on the front of the return for bad debts, tax-paid purchases resold, returned merchandise, or cash discounts that originally included a district tax that has been discontinued.
  6. Where can I get more information?

    For information on how to apply district taxes, request a copy of publication 44, Tax Tips for District Taxes. For information on district rates by city and county, request a copy of publication 71, California City and County Sales and Use Tax Rates. A listing of sales and use tax rates by city and county is also available on our website at www.boe.ca.gov.


Net Tax

  1. Excess Tax Collected

    If you have collected more sales tax from your customers than the amount due calculated on your return, enter the difference in this field.

    Excess tax collected can occur in the following situations:

    • When tax is computed on a transaction which is not subject to tax;
    • When tax is computed on an amount in excess of the amount subject to tax;
    • When tax is computed using a tax rate higher than the rate imposed by law and;
    • When mathematical or clerical errors result in an overstatement of the tax on a billing.
  2. Sales or Use Tax paid to other states on the purchase of tangible personal property. The purchase price must be included in Purchases Subject to Use Tax.

    You may enter the amount of tax paid to other states in this field if all of the following conditions apply:

    • You purchased property out of state and brought it into California for use, consumption, or storage in this state (not for resale in the regular course of business)
    • You paid another state's sales or use tax on your purchase of the property
    • You are not entitled to a tax refund from the other state
    • Your liability for tax in the other state occurred prior to your use, storage, or consumption of the property in California
    • You reported the purchase price on the Purchases Subject to Use Tax line

    Please note: The amount of tax paid to other states claimed cannot exceed the total of the applicable California state, county, local and district taxes in effect at the time of the use. For example, if you paid 8 percent sales tax to another state and used the property in California in an area where the total state, county, local, and district tax rate was 7.75 percent, you cannot not claim more than a 7.75 percent credit. In addition, you may be required to present documentation (a purchase invoice or similar document showing the name and address of the seller, date of purchase, purchase price, and amount of sales or use tax paid) to substantiate the amount of tax paid to other states claimed.


Prepayments and Prior Prepayment Credits

  1. Pre-filled Tax Prepayments

    Prepayment amounts have been pre-filled for your convenience. The pre-filled prepayment amounts reflect tax payments received prior to the date of this filing and do not include penalty charges paid with your prepayments.

    If your records do not agree with the pre-filled prepayment amounts, you may modify the prepayment fields to reflect the amount of tax prepaid. All prepayments claimed are subject to verification. If a prepayment claimed is not valid, you will be billed for the tax, interest and penalty.

  2. Prior Period Overpayment Credits Claimed

    You may only take this credit if you have received a letter from the Board of Equalization authorizing a credit for overpaid prepayments. Enter the amount of the overpaid prepayment(s) and the quarter in which the overpayment occurred.

  3. How to Calculate a Prepayment

    For all prepayments except the 2nd Prepayment of the 2nd Quarter

    Option 1
    Pay at least 90 percent of state, local, and district tax liability for the month.

    Option 2
    Pay an amount equal to one-third (1/3) of the amount subject to the tax in the previous corresponding quarter multiplied by the combined state, local, and district tax rate in effect for the month for which this payment is made.

    This payment is based on the corresponding quarter for the previous year. You may use this option only if you or your predecessor were in business during the entire quarter of the previous year.

    For the 2nd Prepayment of the 2nd Quarter (May 1 through June 15)

    Option 1
    135 percent of the state, county, local and district tax liability for the first 30 days of the period.

    Option 2
    90 percent of the state, county, local and district tax liability for the period.

    Option 3
    An amount equal to one-half (1/2) of the amount subject to tax reported for the second quarter of the previous year multiplied by the state, county, local and district tax rate in effect during the period for which this prepayment is made. You or your predecessor must have been in business during the entire quarter of the previous year to use this option.


File and Pay
Preparer

  1. Preparer Name

    Enter the name of the person completing this return.

  2. Preparer Title

    Enter the title of the person completing this return.

  3. Preparer Phone Number

    Enter the telephone number where the person completing this return can be contacted Monday through Friday from 8:00 AM to 5:00 p.m. (Pacific Time).

Or
Paid Preparer

  1. Paid Preparer Name

    Enter the name of the paid preparer that completed this return.

  2. Paid Preparer Phone Number

    Enter the telephone number where the paid preparer completing this return can be contacted Monday through Friday from 8:00 AM to 5:00 p.m. (Pacific Time).

Payment Information

  1. Payment Method

    E-Check/ACH Debit – Provide BOE your banking information to debit your bank account for the amount of your payment. Enter your 9-digit routing number, bank account number, and select type of account (checking or savings). Payments may be held for any banking day you select up to the due date of the return or prepayment. Your payment will be debited from your bank account the next banking day following the "payment effective date".

    Credit Card – American Express, Discover, MasterCard, and Visa are accepted. You will be directed to our third party vendor, Official Payments Corporation (OPC) to complete your payment. A service fee of 2.3% of the transaction amount will be charged by OPC. This fee is not revenue to the BOE. After paying by credit card, be sure to click "continue" to be routed back to BOE's online filing to complete your return filing and print your online filing confirmation.

    Paper Check – A payment voucher showing the amount due and the due date will be printed following your confirmation page. Return the payment voucher with your payment to the address shown on the voucher. This method is not available if you are required to pay by EFT.

    ACH Credit – (Available to EFT accounts only) Allows you to file online and initiate a separate payment through your financial institution. You must first register with BOE to pay by ACH Credit to obtain BOE’s bank account information and ACH Credit specifications. Call the EFT Helpline at 1-916-327-4229 during regular business hours for more information.

    Return Only – (Available to EFT accounts only) If you are registered to pay by EFT, select "Return Only" to file your return online and submit your payment separately.

  2. Bank Routing Number

    See 1 Bank Routing Number (requires 9 digits)

  3. Bank Account Number

    See 2 Bank Account Number (not to exceed 17 digits)

    This image shows a voided check detailing the location of the Routing Transit Number, the Bank Account Number, and the Check Number.
  4. Payment Amount

    This amount includes any tax, penalty and interest paid.

  5. Payment Amount for Lumber Products Assessment

    This amount includes any lumber products assessment, penalty and interest paid.

  6. Payment Effective Date

    This is the date you want your payment to be effective. (System will default this field to the current date).

    Select the Month, Day and Year you want your payment to be effective:

    • You may select a date up to 30 days in advance, not to exceed the due date of this filing.
    • When the due date of your filing falls on a weekend or holiday (National or State of California), the due date will move to the next business day.
    • The effective date that you select must be a valid banking day.
    For EFT (Electronic Funds Transfer) Accounts Only:
    Effective Date Settlement Date
    before 3:00 p.m. (Pacific Time), Monday-Friday Next banking day
    after 3:00 p.m. (Pacific Time), Monday-Friday Two banking days

    If you complete your filing on a holiday, weekend or Monday through Friday after 3:00 p.m. (Pacific Time), the earliest effective date you can select is the next valid banking day.

  7. Payment Amount for Lumber Products Assessment

    This amount includes any lumber products assessment, penalty and interest paid.