State Alerts Doctors, Others to Potential Use Tax Liability

California has sent letters to physicians and other service providers over the past six months informing them that they may owe the state use tax for products purchased out of state.  The use tax is the same as the sales tax, and ranges from 7.25% to 9.25% depending on where in California the buyer lives.

• "California Warns Companies They May Owe Use Tax" (Lifsher, Los Angeles Times, 12/29/08).