You may report use tax on your income tax return instead of filing a use tax return with the California State Board of Equalization.

If you owe use tax but choose not to report it on your income tax return you must report and pay the tax to the State Board of Equalization. To do so, download a copy of Publication 79-B, California Use Tax, from www.boe.ca.gov You can also request a copy by calling the State Board of Equalization's Information Center at (800)400-7115 or TTY/TDD (800)735-2929.

Note: Businesses that have a California seller's permit must continue to report business purchases subject to use tax on their sales and use tax returns.

Purchases Subject To Use Tax

• Report only purchases from out-of-state or Internet sellers made during the year that corresponds with the income tax return you are filing. For example, use your 2004 return to report taxable purchases made in 2004.
• Report items that would have been taxable in a California store. For example, you would include purchases of clothing, but not purchases of prescription medicine. If you have questions on whether a purchase is taxable, visit the State Board of Equalization's website at www.boe.ca.gov ,or call its Information Center at (800)400-7115 or TTY/TDD (800)735-2929.
• If you traveled to a foreign country and brought items back to California, generally the use tax is due on the purchase price of the goods you listed on your U.S. Customs Declaration less the $400 per-person exemption. This $400 exemption does not apply to goods sent or shipped to California by mail or other common carrier.

Do not report the following on your income tax return:

• Vehicles, vessels, and trailers that must be registered with the Department of Motor Vehicles
• Mobile homes or commercial coaches that must be registered annually as required by the Health and Safety Code
• Vessels documented with the U.S. Coast Guard
• Aircraft
• Leases of machinery, equipment, vehicles, and other tangible personal property.
• If your filing status is "married filing separately," you may elect to report one-half of the use tax due or the entire amount on your income tax return. If you elect to report one-half, your spouse may report the remaining half on his or her income tax return or on the individual use tax return available from the State Board of Equalization.

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