Worksheet, Line 1, Purchases Subject to Use Tax

Report purchases of items that would have been subject to sales tax if purchased from a California retailer unless your receipt shows that California tax was paid directly to the retailer. For example, generally, you would include purchases of clothing, but not exempt purchases of food products or prescription medicine. For more information on nontaxable and exempt purchases, you may visit the California Department of Tax and Fee Administration’s website at cdtfa.ca.gov .

Include handling charges.

Do not include any other state’s sales or use tax paid on the purchases.

Enter only purchases made during the year that corresponds with the tax return you are filing.

If you traveled to a foreign country and hand-carried items back to California, generally use tax is due on the purchase price of the goods you listed on your U.S. Customs Declaration less an $800 per-person exemption. For the hand carried items, you should report the amount of purchases in excess of the $800 per-person exemption. This $800 exemption does not apply to goods sent or shipped to California by mail or other common carrier. For goods sent or shipped, you should report the entire amount of the purchases.

If your filing status is “married/RDP filing separately,” you may elect to report one-half of the use tax due or the entire amount on your income tax return. If you elect to report one-half, your spouse/RDP may report the remaining half on his or her income tax return or on the individual use tax return available from the California Department of Tax and Fee Administration.

Note : You cannot report the following types of purchases on your income tax return.

Vehicles, vessels, and trailers that must be registered with the Department of Motor Vehicles.

Mobile homes or commercial coaches that must be registered annually as required by the Health and Safety Code.

Vessels documented with the U.S. Coast Guard.

Aircraft.

Rental receipts from leasing machinery, equipment, vehicles, and other tangible personal property to your customers.

Cigarettes and tobacco products when the purchaser is registered with the California Department of Tax and Fee Administration as a cigarette and/or tobacco products consumer.