1. (a) In General. Revenue and Taxation Code (RTC) section 6452.1 requires the California Department of Tax and Fee Administration (Department) to annually calculate the estimated amount of use tax due according to a person's adjusted gross income (AGI) and make such amounts available to the Franchise Tax Board (FTB), by July 30 of each year, in the form of a use tax table for inclusion in the instructions to the FTB's returns.

2. (b) Who is Eligible to Use the Department's Use Tax Tables.

   1. (1) Consumers may elect to use the Department's use tax tables included in the instructions to their FTB returns to report their estimated use tax liabilities for one or more single nonbusiness purchases of individual items of tangible personal property each with a sales price of less than one thousand dollars ($1,000) on their FTB returns. However, eligible consumers may still calculate their actual use tax liabilities using the worksheets in the instructions to their FTB returns and report their actual use tax liabilities on their FTB returns. Consumers are not required to use the use tax tables included in the instructions to their FTB returns.
   2. (2) Consumers may not use the Department's use tax tables to estimate their use tax liabilities for business purchases. Businesses required to hold a seller's permit or to register with the Department under the Sales and Use Tax Law and report their use tax liabilities directly to the Department may not use the Department's use tax tables.
3. (c) Safe Harbor. If eligible consumers use the use tax tables included in the instructions to their FTB returns to estimate their use tax liabilities for qualified nonbusiness purchases and correctly report their estimated use tax liabilities for their qualified nonbusiness purchases in accordance with their AGI ranges, then the Department may not assess the difference, if any, between the estimated use tax liabilities reported in accordance with the use tax tables and the consumers' actual use tax liabilities for qualified nonbusiness purchases.

4. (d) Definitions and Data Sources.

   1. (1) AGI Ranges. The Department's use tax tables shall be separated into fifteen (15) AGI ranges as follows:

      1. (A) AGI less than $10,000;
      2. (B) AGI of $10,000 to $19,999;
      3. (C) AGI of $20,000 to $29,999;
      4. (D) AGI of $30,000 to $39,999;
      5. (E) AGI of $40,000 to $49,999;
      6. (F) AGI of $50,000 to $59,999;
      7. (G) AGI of $60,000 to $69,999;
      8. (H) AGI of $70,000 to $79,999;
      9. (I) AGI of $80,000 to $89,999;
      10. (J) AGI of $90,000 to $99,999;
      11. (K) AGI of $100,000 to $124,999;
      12. (L) AGI of $125,000 to $149,999;
      13. (M) AGI of $150,000 to $174,999;
      14. (N) AGI of $175,000 to $199,999;
      15. (O) AGI more than $199,999.
   2. (2) Use Tax Liability Factor. On June 1, 2026, and each June 1 thereafter, the use tax liability factor for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases by 0.017, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent.
   3. (3) Total Personal Income. Total personal income shall be determined by reference to the most current personal income data published by the United States Bureau of Economic Analysis for an entire calendar year.
   4. (4) Total Spending on Electronic Shopping. Total spending on electronic shopping shall be determined by summing the most current quarterly retail e-commerce sales data published by the United States Census Bureau for an entire calendar year.
   5. (5) Total Spending on Taxable Purchases. Total spending on taxable purchases shall be determined by multiplying total spending on electronic shopping by 80 percent (0.80), so that the result does not include spending on nontaxable purchases, and then rounding the result to the nearest tenth of a percent.
   6. (6) Percentage of Income Spent on Taxable Purchases. The percentage of income spent on taxable purchases shall be calculated by dividing total spending on taxable purchases by total personal income, multiplying the result by 100, and rounding the result to the nearest tenth of a percent.

   7. (7) Average State, Local, and District Sales and Use Tax Rate. The average state, local, and district sales and use tax rate shall be the total of:

      1. (A) The average of the rates of the statewide sales and use taxes imposed under article XIII of the California Constitution and the Sales and Use Tax Law (RTC section 6001 et seq.) during each quarter of the preceding calendar year;
      2. (B) The average of the statewide rates of local tax imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (RTC section 7200 et seq.) during each quarter of the preceding calendar year; and
      3. (C) The weighted average of the rates of the district taxes imposed under the Transactions and Use Tax Law (RTC section 7251 et seq.) in effect in the various jurisdictions throughout the state during each quarter of the most recent calendar year for which the Department has taxable sales data by jurisdiction after taking into account the proportion of the total statewide taxable transactions (by dollar) reported for each jurisdiction during each quarter of that calendar year.

5. (e) Calculation of the Estimated Use Tax Liability.

   1. (1) The estimated use tax liability for consumers in the AGI range described in subdivision (d)(1)(A) shall be determined by multiplying $5,000 by the use tax liability factor and then rounding the result to the nearest whole dollar.
   2. (2) The estimated use tax liability for consumers in each of the AGI ranges described in subdivision (d)(1)(B) through (N) shall be determined by multiplying the midpoint of each AGI range by the use tax liability factor and then rounding the result to the nearest whole dollar.
   3. (3) The estimated use tax liability for consumers in the AGI range described in subdivision (d)(1)(O) shall be determined by multiplying each consumer's actual AGI by the use tax liability factor and then rounding the result to the nearest whole dollar.

6. (f) Use Tax Table Format. The use tax tables for calendar year 2026 and subsequent years shall utilize the same format as follows:

   Adjusted Gross Income (AGI) Range

   Use Tax Liability

   Less Than $10,000

   $10,000

   to

   $19,999

   $

   $20,000

   to

   $29,999

   $

   $30,000

   to

   $39,999

   $

   $40,000

   to

   $49,999

   $

   $50,000

   to

   $59,999

   $

   $60,000

   to

   $69,999

   $

   $70,000

   to

   $79,999

   $

   $80,000

   to

   $89,999

   $

   $90,000

   to

   $99,999

   $

   $100,000

   to

   $124,999

   $

   $125,000

   to

   $149,999

   $

   $150,000

   to

   $174,999

   $

   $175,000

   to

   $199,999

   $

   More than $199,999 -- Multiply AGI by % (.000)

Note: Authority cited: Section 7051, Revenue and Taxation Code; and Sections 15570.22 and 15570.24, Government Code. Reference: Section 6452.1, Revenue and Taxation Code.

History

1. New section filed 8-16-2011; operative 9-15-2011 (Register 2011, No. 33).

2. Amendment of subsection (a), new subsections (a)(1)-(3), amendment of subsection (b)(1), repealer and new subsections (b)(1)(A)-(H), new subsections (b)(1)(I)-(O), amendment of subsection (b)(2), new subsections (b)(5)-(b)(5)(C), subsection renumbering, amendment of newly designated subsection (b)(6) and subsections (c)(1)-(3) and (d)(2) filed 5-1-2012; operative 5-31-2012 (Register 2012, No. 18).

3. Amendment of subsection (b)(2) filed 5-28-2013; operative 7-1-2013 (Register 2013, No. 22).

4. Amendment of subsection (b)(7)(A) filed 5-13-2015; operative 7-1-2015 (Register 2015, No. 20).

5. Amendment of subsections (a)(1)-(3) and (b)(2) filed 9-12-2019; operative 9-12-2019. Pursuant to Government Code sections 11340.9(g) and 15570.40(b), this action is exempt from the Administrative Procedure Act. Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2019, No. 37).

6. Amendment of subsection (b)(2) filed 7-8-2020; operative 7-8-2020. Pursuant to Government Code section 11340.9(g) and 15570.40(b), this action is exempt from the Administrative Procedure Act. Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2020, No. 28).

7. Amendment of subsection (b)(2) and Note filed 7-13-2021; operative 7-13-2021. Pursuant to Government Code section 15570.40(b), this action is exempt from the Administrative Procedure Act. Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2021, No. 29).

8. Amendment filed 11-26-2025; operative 1-1-2026 (Register 2025, No. 48).