California State Board of Equalization Member and former small business owner
A new law, which might take the prize for the worst piece of legislation in 2009, requires nearly 200,000 California businesses to register and file use tax payments with the Board of Equalization (BOE) by April 15th. This onerous regulation will cost more to comply with – because of the unbelievable inconvenience it causes business owners – than the state will make in revenue.
The new law requires all business owners with gross revenue over $100,000, that are not already registered with the BOE, to register for a use tax account and file use tax returns for 2007, 2008, 2009, and for every year in the future.
That’s right: three years of filings will be due on the same day taxpayers must file state and federal income tax and payroll taxes.
AB 4x 18 was signed into law in July 2009. The Board rushed to begin implementation in November 2009, but many businesses received the news as late as mid-March 2010, and more have yet to be notified. If you haven’t received a letter and your business makes over $100,000 in gross revenue, it is your responsibility to register and file use tax returns by April 15th.