California Use Tax

 By: InHavenPro : March 17th, 2023-07:00
This is one of those wildly excessive and confusing taxes, I had never previously paid this so I am asking the California locals here, do you pay this use tax after purchasing a watch from another country even if you had already paid the full state sales tax at the time of purchase?? Sincerely appreciate your answers and insights! Cheers, Filip

This is a humorous answer. Any similarity to an actual

 By: myles721 : March 17th, 2023-07:55
answer is fictitious and purely coincidental:

I do not live in California.


Good answer xD

 By: InHavenPro : March 17th, 2023-08:15

EU purchases

 By: Weems@8 : March 17th, 2023-08:47
I buy only in EU zone to avoid difficult administrative situations.
The US market is full of good watches, and most of the best Swiss watch brands are present in the USA, so buy national and the prices are not reaching heaven.
I am jealous that i am no American citizen. EU is a harsh tax hunger continent.
That is why Switzerland do not want in the EU and stay neutral.

The Swiss are extremely....

 By: InHavenPro : March 17th, 2023-16:19
astute wink........

Is this a new tax that youโ€™re asking about?

 By: ArmisT : March 17th, 2023-08:51

Clearly not,

 By: InHavenPro : March 17th, 2023-19:48
I just happen never to have had to pay it specifically smile........

CA Use Tax has existed for as long as Sales Tax has...

 By: India Whiskey Charlie : March 17th, 2023-13:29
Technically, you either pay sales tax or use tax if a company does not charge you the former. Retailers in foreign countries are not setup to charge you CA sales tax, that's why the forwarding company (FedEx, DHL, etc.) will charge you use tax upon clearing your package through customs. Bottom line, you are supposed to pay the tax only once.

P.S. State Sales/Use tax is independent from the Federal import duties which are also collected by the forwarding company.


 By: InHavenPro : March 17th, 2023-19:51
I did already pay the 10.25% sales tax which was calculated based off of my shipping location. This of course on top of the customs duties and shipping itself. Much appreciate the clarification, I received a letter addressing this tax last night and went to their website this morning to complete the required forms.... Cheers, Filip

If you paid the tax to a retailer in California you don't pay again

 By: cazalea : March 18th, 2023-03:05
If the watch came from outside the United States, then you wouldn't have paid state sales tax and you owe Use Tax. 

Since the normal carriers (Fedex, DHL, TNT, UPS, etc or ) electronically report your imports to the California Department of Tax and Fee Administration (CDTFA), you should go to their website, OR you can ask your tax preparer OR you can put it on your 540 Return yourself. Otherwise they will contact you and it's up to you to explain and pay. It doesn't always happen but when it does you will have a penalty to pay and they will monitor your stuff in the future (I'm speaking from personal experience).

If you bought it from another state retailer, they may or may not have collected the tax. The retailer will know and show you but won't have declared the value of the watch to the carrier who brings it to you.

I file separately with CDTFA and then I can make sure things are done properly. I can explain why I am not paying if an item is returned, like a watch or a couple years ago, my defective hi-tech hip flask.

Send me a private message if you want to discuss.


BTW - you have all year to pay that Use Tax.

It seems odd for a dealer outside the US to be collecting US sales tax.

 By: Steve E : March 18th, 2023-03:11
Unless they also have US physical location(s).