As we all know California is bankrupt, and so goes CA, so goes the nation. Fed & State govt's are clamping down on (out of state sales), (internet sales) in the use of "use tax". This is what my tax man told me about this subject.
California Sales and "Use Tax": If you purchased merchandise from a vendor located outside the state or Country, you may owe CA "Use Tax". This includes purchases you made over the internet. "Use Tax" is like a sales tax but you pay it directly to the state, rather than to the retailer. The rule of thumb is; you owe "Use Tax" if what you bought would have been subject to sales tax if you purchased it at a local store and did not pay CA sales tax. You generally owe "Use Tax" when you use, store or consume-in CA-tangible personal property purchased from outside of state vendors. If the vendor does not collect the tax on the purchase, the purchaser must pay the tax directly to the state. If you do not report and pay your "Use Tax" in a timely manner, such as with income tax return, the state will assess penalties and interest.
Common items subject to "Use Tax": Clothes, CD's, books, computers, cameras, toys, appliances, make-up, over the counter meds, collectibles, jewelry, sports equip., computers programs shipped on disc, e-bay stuff. New for 2009: must claim foreign bank accounts. Cash for clunkers could be taxable too.
On my 2009 CA State Form 540, the "Use Tax" line is #95
Have a nice day
