The Board of Equalization approved a tax table that individuals can use (if they wish) to report Use Tax for their 2011 tax returns (filed in 2012). Use Tax is owed by individuals and businesses when they buy products where sales tax is not charged but would be charged if they purchased it in a local store.
The table is only for non-business purchases of $1,000 or less; businesses cannot use the table and must report their actual expenses. The table is:
| Adjusted Gross Income | Use Tax |
| Less than $20,000 | $7 |
| $20,000 – $39,999 | $21 |
| $40,000 – $59,999 | $35 |
| $60,000 – $79,999 | $49 |
| $80,000 – $99,999 | $63 |
| $100,000 – $149,999 | $88 |
| $150,000 – $199,999 | $123 |
| More than $199,999 | AGI times 0.07% (0.0007) |
Again, businesses must use actual expenses to calculate Use Tax.
Most individuals ignore Use Tax so it’s likely having the table will increase compliance with the law.
Tags: UseTax