California Board Eyes ‘Use Taxes’ From Health Providers, Businesses
The California State Board of Equalization is looking to doctors, dentists, chiropractors and businesses that buy products from out of state vendors to pay a "use tax" on those purchases in hopes of boosting state revenue, Capitol Weekly reports.
California's use tax is the same percentage as its sales tax.Â The use tax applies to purchases that California consumers and businesses make with out-of-state vendors that do not assess the California sales tax to the purchases.
Of the estimated $2 billion use and sales taxes the state does not collect, about $1.1 billion are use taxes, according to Capitol Weekly.
The Board of Equalization is asking businesses to register voluntarily with the state and pay use taxes. Â The board said entities that do not voluntarily register with the state could be subject to audits.The effort comes as the state works to address a roughly $40 billion budget deficit over the next 18 months (Howard, Capitol Weekly, 1/29). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.