BOE-401-INST (S1F) REV. 6 (4-09)
STATE OF CALIFORNIA
BOARD OF EQUALIZATION
State, Local, and District Sales and Use Tax Return Instructions
These instructions are provided to assist you with completing your California sales and use tax return. If you need assistance, please call the Taxpayer Information Section toll-free at 800-400-7115. Our customer service representatives can help you with general questions. They are available from 8 a.m. to 5 p.m., Pacific time, Monday-Friday, excluding holidays. For TDD/TTY assistance, call 800-735-2929.
Filing Your Return
The BOE-401-A and BOE-401-GS returns are used to report taxes due under the California Sales and Use Tax Law, the Uniform Local Sales and Use Tax Law, and the Transactions (sales) and Use Tax Law which are administered by the Board of Equalization (BOE). You must file a return even if you do not owe taxes for the reporting period. If you are unable to file your return on time, you may qualify for an extension. To request an extension, you will need to complete BOE-468, Request for Extension of Time to File a Tax Return. You may call 800-400-7115 to request a copy of the form. You may also download a copy from our website at www.boe.ca.gov, under "Forms and Publications." If you do not file a return, we will bill you for an estimated amount.
Electronic Filing of Your Tax Return
Electronic filing (efiling) is also available for nearly all sales and use taxpayers. Efiling is a quick, easy, and accurate method to file a return. Click here for more information or to begin efiling with BOEfile, the BOE's free efiling option.
When completing a return, please remember . . .
· Youshouldroundofftothenearestwholedollar. · YoumustcompleteBOE-531-A1, Schedule A1, Computation Schedule for District Taxes--Short Form. · You must sign, date, and mail your return to the address shown on page 1 of your return, with full payment by the due date. · Be sure to make a copy for your records. · If a paid preparer completed your return, enter the preparer's name and phone number in the space provided on the return.
· Check or Money Order: Make your check or money order payable to the State Board of Equalization and always write your account number on the check or money order. Be sure to enclose your payment with your return. · Credit Card: You can charge your tax return payment if you have an American Express, Discover Network, MasterCard, or Visa credit card. Other cards can not be accepted. To make credit card payments, visit our website at www.boe.ca.gov, click on the efile logo or call 800-2pay-tax (800-272-9829). The credit card processing vendor will charge a convenience fee of 2.5 percent of the amount charged. This convenience fee is not paid to or retained by the BOE. Be sure to check the box on your return indicating you have paid by credit card. This will ensure that your return is matched up to your credit card payment. Note: Never send cash payments through the mail. Always make cash payments in person and obtain a receipt. If you are required by the BOE to pay taxes by Electronic Funds Transfer (EFT), you must continue to use that method. Additional information is available on our website by downloading publication 80-D, EFT Quick Reference Guide. THE BOE-401-INST IS AN INTERNET-ONLY FORM
BOARD OF EQUALIZATION
BOE-401-INST (S1B) REV. 6 (4-09)
Lines 1 thru 3--Front Page
Sales · Purchases Subject to Use Tax
Line 1. Total Sales (gross receipts)
Enter your total taxable and nontaxable sales for the reporting period, including lease and rental receipts. Report all sales (in any manner) related to California business. You will deduct nontaxable transactions in Section A through C on page 2. Notes: · Includeallchargesrelatedtoyoursales,suchaslabor,service,andshippingandhandlingcharges. · Ifyousoldanybusinessassets,suchasfixturesandequipment,duringthe eportingperiod,youmustreportthesale.Ifyouarefiling r your final return and reporting the sale of the business assets, see the last bullet under "Line 2. Purchases Subject to Use Tax." · Your"totalsales"mayincludeamountsforCaliforniasalesorusetaxes.Ifthisisthecase,besuretodeductthosetaxamountson line 9. If you do not, you will overpay tax.
Line 2. Purchases Subject to Use Tax
Enter your total purchases that are subject to use tax, as explained below. Your purchases of merchandise, equipment, and other tangible personal property are subject to use tax and must be reported if you · Purchasedthepropertyfromanout-of-stateretailerwhodidnotcollect aliforniausetax,or C · Purchasedthepropertywitharesalecertificateorotherexemptioncertificateand · UsedthepropertyinCaliforniafora urposeotherthan(1)resaleor(2)demonstration,retention,ordisplaywhileholdingitforsale p in the regular course of business You must also report your purchase of a vessel or aircraft if you (1) purchased it from an unlicensed retailer who did not charge tax on the transaction, and (2) used the property for a purpose other than resale as described above. Enter the amount you paid for the property. Notes: · Ifyoupaidanotherstate'ssalesorusetaxonyourpurchase,donotincludethetaxpaymentaspartofyourpurchaseprice.Youmay be eligible for a credit for the other state's tax (see line 20). · Ifyouarereportingpropertypurchasedwitharesalecertificate,reportthepurchasepriceonthetaxreturnforthereportingperiod during which you first used the property in California. · Ifyouarereportingpropertypurchasedfromanout-of-stateretailerwhodidnotchargeyouforCaliforniatax,reportthepurchase price on the tax return for the reporting period during which you first used the property in California. · Ifyouareclosingoutyourseller'spermitandhavesoldfixturesandequipment,youshouldreportthesalespriceandidentifythe sale as "fixtures and equipment" on line 2 of your final sales and use tax return. You must also report any inventory you intend to retain for your own use or for use as a gift, that was purchased for resale without the payment of tax or tax reimbursement, on line 2 of your final sales and use tax return and identify it as "retained inventory." Sales of inventory to another retailer or to the purchaser of your business are not taxable, but should be reported as "Sales for Resale" on line 4 of your return. A resale certificate should be obtained from the buyer and saved in your records. For more detailed information, see publication 74, Closing Out Your Seller's Permit.
Add lines 1 and 2. Enter the result on line 3.
Lines 4 thru 11--Back Page
Full Deductions, Tax Recovery Adjustments/Deductions and Partial State Tax Exemptions.
The following transactions are not subject to tax and will be subtracted from the total on line 3. First you must complete the deductions on the back of your return. You cannot claim a deduction for a transaction unless it has been reported on line 1 or 2 of this return or a previous return. If you did not report the original sale, you cannot claim a deduction related to that sale, unless you are a "lender" registered with the BOE. You must maintain records that support all claimed deductions.
Section A. Full Deductions--Back Page
Any transaction(s) under this section must be included on line 1, Total Gross Sales, on the front page.
Line 4. Sales to Other Retailers for Purposes of Resale
Enter your total sales to other sellers who submitted resale certificates to you for their purchases. In general, you can accept resale certificates from other sellers who are buying property to resell in the regular course of business. If you obtain a timely and valid resale certificate, taken in good faith, tax will not apply to your sale. See BOE-230, General Resale Certificate.
BOE-401-INST (S2F) REV. 6 (4-09)
STATE OF CALIFORNIA
BOARD OF EQUALIZATION To be valid, resale certificates must contain specific information. For more information, see Regulation 1668, Sales for Resale. You can verify the validity of seller's permits by calling the BOE's Seller's Permit Verification service at 888-225-5263 or by visiting our website at www.boe.ca.gov.
Line 5. Nontaxable Sales of Food Products
Enter your nontaxable sales of food products sold for human consumption. Whether food product sales are taxable depends on many conditions, including who makes the sale, where the sale occurs, who the customer is, and what is sold. For example, the following sales are generally taxable and should not be deducted: · Salesofalcoholicandcarbonated everages b · Salesofhotpreparedfoodproducts · Salesofmealsorfoodsoldforconsumptionatyourplaceofbusinessorsoldforconsumptioninaplacewhereadmissionischarged For more information on food sales, see Regulation 1602, Food Products, or Regulation 1603, Taxable Sales of Food Products. Vending machine operators should order Regulation 1574, Vending Machine Operators.
Line 6. Nontaxable Labor
Enter labor charges for installing premanufactured property or for repairing or reconditioning property to restore it to its original use. Note: Labor charges for making or fabricating a new product (such as labor charges for making a ring or furniture), or for assembling a product, are generally taxable and should not be deducted. Tax applies even if your customer provides the property that you fabricate. (Regulation 1546, Installing, Repairing, Reconditioning in General and publication 108, When is Labor Taxable?)
Line 7. Sales to the United States Government
Enter sales made to: · TheUnitedStatesgovernmentoritsunincorporatedagenciesandinstrumentalities,suchasthefollowingfederaldepartments: Treasury, Interior, Agriculture, or Defense · AnyincorporatedagencyorinstrumenalityoftheUnitedStateswhollyownedbyeithertheUnitedStates,orbyacorporationwholly t owned by the United States · TheAmericanRedCross,itschaptersandbranches · Federalreservebanks,federalcreditunions,federallandbanks,andfederalhomeloanbanks Note: Sales made to the State of California or to cities and counties and local governments in the state are generally taxable and should not be deducted. They are treated like any other sale. (Regulation 1614, Sales to the United States and Its Instrumentalities or publication 102, Sales to the U.S. Government.)
Line 8. Sales in Interstate or Foreign Commerce
Enter sales that are exempt from tax as interstate or foreign commerce (sales involving shipments or deliveries from California to points outside this state). For a sale to be exempt, the sales agreement or contract must require the property to be shipped to an out-of-state point, and you must either: · Useyourcompanyvehicle(orotherconveyanceoperatedbyyourbusiness)toshipthepropertytothatlocation,or · Deliverthepropertytoacarrier,customsbroker,orforwardingagentforshipmentoutsidethisstate.(Regulation 1620, Interstate and Foreign Commerce or publication 101, Sales Delivered Outside California.)
Line 9. Sales Tax
Enter an amount on this line only if the amount you reported on line 1 includes California sales or use taxes. Enter only the tax amounts that are included on line 1. (Regulation 1700, Reimbursement for Sales Tax.)
Line 10. Other Deductions
Each deduction must be clearly explained. You may be entitled to claim other deductions in addition to those allowed on lines 4 through 9. Enter the amount for those deductions here. Examples of transactions that may be deductible include the following: · Salesbypharmacistsofprescriptionmedicinesforusebyhumans.(Regulation 1591, Medicines and Medical Supplies, Devices and Appliances.) · Transportationchargesfordeliveringgoodstoapurchaserbyanindependentcarrier(thetransportationchargesmustbeseparately stated on the invoice). If you charge more for delivery than your actual costs, the added amount is subject to tax and cannot be deducted. (Regulation 1628, Transportation Charges or publication 100, Shipping and Delivery Charges.) · Salesofanimals,seeds,plantsandfertilizer,usedas,orusedtoproduce,foodforhumanconsumption.(Regulation 1587, Animal Life and Feed, and Regulation 1588, Seeds, Plants and Fertilizers.) For more information, request a copy of publication 61, Sales and Use Taxes: Exemptions and Exclusions.
BOE-401-INST (S2B) REV. 6 (4-09)
If you are claiming a Tax Recovery Deduction and Partial State Tax Exemptions for periods not listed in Sections B or C on the back of your return, follow these steps:
If you have transactions to report that occurred prior to July 1, 2004, you can not use Section B or Section C on the back of your return. For transactions prior to July 1, 2004, you must adjust the amount you report on line 13(b) titled "Tax Recovery Deduction" located on the front of your return. To make this adjustment you must prepare a schedule that shows the original transaction date, type of deduction/exemption being taken and the tax rate you charged. Add the total tax amount for all deductions/exemptions prior to July 1, 2004, and enter that amount in box 13(b) on the front of your return as a negative number. For assistance in reporting tax recovery deductions or partial tax exemptions in periods prior to July 1, 2004, you can call the Taxpayer Information Section at 800-400-7115.
For Sections B and C:
Due to the 1 percent increase in the state tax rate, you must report your transaction(s) prior to April 1, 2009 separately from your transaction(s) that occurred on or after April 1, 2009. Transactions that occurred prior to April 1, 2009, should be entered in column A. Transaction(s) on or after April 1, 2009 should be entered in column B. Add the amounts in column A and column B and enter the result in column C. Be sure to enter your transaction(s) in the appropriate columns for the period in which the transaction(s) occurred. This will ensure your credit is taken at the appropriate rate.
Section B. Tax Recovery Deductions/Adjustments
Line 1. Bad Debt Losses--On Taxable Sales
Enter bad debt losses, as described below. If you have reported a taxable sale and have been unable to collect payment for the sale, you may take a deduction for the bad debt. Bad debts may take the form of: · Checksthathavebeenreturnedtoyouunpaidbythepurchaser'sbankandwhichyouhavedeterminedtobeuncollectible,or · Amountsfromchargeorcreditsalesthatyouhavedeterminedtobeuncollectible The bad debts must be charged off for income tax purposes, or, if you are not required to file income tax returns, the bad debts must be charged off in accordance with generally accepted accounting principles. Enter only the amount of the sale before tax. For example, if you sold merchandise for $15 plus sales tax and were unable to collect any amount for the sale, you would claim $15 as a deduction. If you claim a bad debt deduction and later recover a payment, you must report the payment on the tax return filed for the period in which the recovery payment was made. (Regulation 1642, Bad Debts.)
Line 2. Bad Debt Losses--Lenders
If you are registered with the BOE as a Lender, you may be entitled to deduct certain bad debt losses on the lender portion of your business. There are a number of requirements to qualify for this deduction. For detailed information, please review Regulation 1642, Bad Debts.
Line 3. Cost of Tax-Paid Purchases Resold Prior to Use
You may claim a deduction on this line if you: · PaidCaliforniasalesorusetaxwhenpurchasinggoodsormerchandise,and · Soldthepropertywithoutfirstusingit(otherthanretaining,demonstrating,ordisplayingitwhileholdingitforsaleintheregular course of business) Enter only the amount of the purchase price before tax. For example, if the property was sold to you for $15 plus tax, you would claim only $15 as a deduction. (Regulation 1701, Tax-Paid Purchases Resold.)
Line 4. Returned Taxable Merchandise
Enter amounts you credited or refunded to customers for returned taxable merchandise, as described below. You can take this deduction only if: · Youreturnedorcreditedtoyourcustomerthefullsalesprice,includingsalestaxcharges,and · Thecustomer,inordertoobtaintherefundorcredit,isnotrequiredtopurchaseotherpropertyatapricegreaterthantheamount charged for the property returned Claim only the amount of the sale before tax. For example, if the returned merchandise had been sold for $15 plus sales tax, you would claim only $15 as a deduction. (Regulation 1655, Returns, Defects and Replacements.)
BOE-401-INST (S3F) REV. 6 (4-09)
STATE OF CALIFORNIA
BOARD OF EQUALIZATION
Line 5. Cash Discounts on Taxable Sales
If you gave a cash discount to a customer on a taxable sale, enter the amount of the discount here. You can claim a deduction on this line only if you reported the full (undiscounted) selling price on line 1. Do not use this line if you reported the discounted selling price on line 1 of this return or a previous return. In addition, you must ensure that you do not collect from your customer more tax than the amount due on the discounted price. If you collect more than the amount due on the discounted price, you cannot claim this deduction. (Regulation 1671, Trading Stamps and Related Promotional Plans; Regulation 1700, Reimbursement for Sales Tax.)
Section C. Lines 1 thru 5: Partial Exemptions.
Due to a change in the state tax rate you must report your transaction(s) prior to April 1, 2009 separately from your transaction(s) that occurred on or after April 1, 2009. Enter your transaction(s) in the appropriate column for the period in which the transaction(s) occurred. This will ensure your credit is taken at the appropriate rate. The following transactions are exempt from the state portion of the total sales and use tax rate. They remain subject to 2.00 percent of the total sales and use tax rate, representing local, city, and county taxes. They are also subject to any applicable district taxes.
Exemption Certificate Requirements
Retailers who wish to claim a partial exemption must obtain from purchasers a timely, valid exemption certificate as described in Regulation 1667, Exemption Certificates. The BOE has designed a specific certificate for this purpose, entitled, "Certificate of Partial Exemption." The certificate is available on our website at www.boe.ca.gov or call our Taxpayer Information Section at 800-400-7115 for a copy. Retailers must retain the completed certificate for a period of not less than four years.
Line 1. Teleproduction Exemption
Complete this line to claim an exemption for sales or purchases made by qualified persons of tangible personal property used primarily in: · Teleproductionorotherpostproductionservicesforfilmorvideothatincludeediting,filmandvideotransfers,transcoding,dubbing, subtitling, credits, close captioning, audio production, special effects (visual or sound), graphics, or animation, or · Withrespecttopropertywithausefullifeofatleastoneyear,tomaintain,repair,measure,ortestpropertyused rimarilyin p teleproduction or other postproduction services A qualified person is a business that is primarily engaged in providing the specialized motion picture or video postproduction services described above. A qualified purchaser must provide the retailer with a Section 6378 Exemption Certificate; otherwise, the exemption will not be allowed. This exemption does not apply to the sale or use of any tangible personal property that is used primarily in administration, general management, or marketing (used 50 percent or more of the time in one or more of those activities). (Regulation 1532, Teleproduction or Other Postproduction Service Equipment.)
Line 2. Farm Equipment
For a description of exempt farm equipment and who is eligible to claim this exemption see publication 66, Agricultural Industry and Regulation 1533.1, Farm Equipment and Machinery. Complete this line to claim a partial exemption for the sale, storage, use or other consumption of qualified farm equipment, machinery and their parts, as described below. It also applies to qualified lease payments for farm equipment and machinery rentals payable on or after September 1, 2001. Who can claim a partial exemption? You can claim this partial exemption if you are a person engaged in an agricultural business described in Codes 0111 to 0291 of the Standard Industrial Classification (SIC) Manual or are a person that assists such classified person by performing an agricultural service described in Codes 0711 to 0783 of the SIC manual. What type of equipment is eligible? · "Implementsofhusbandry,"asdefinedinRevenueandTaxationCodesection411.Suchpropertygenerallyincludesanytool, machinery, equipment, appliance, device, or apparatus. The farm equipment, machinery, and parts must be used primarily in producing and harvesting agricultural products. "Primarily" means 50 percent or more of the time. · PropertyasdefinedinChapter1, ivision16oftheVehicleCodeusedexclusivelyinagriculturaloperations.Suchpropertyunder D certain conditions includes lift carriers, tip-bed type trailers, trailers/semi-trailers having no bed, spray or fertilizer applicator rigs, nurse rigs or equipment auxiliaries, row dusters, trap wagons, fertilizer nurse tanks or trailers, cotton trailers, truck tractors and truck tractor/semi-trailer combinations. Vehicles primarily designed for the transportation of persons or property on a highway are generally not considered implements of husbandry and, therefore, do not qualify for this partial exemption.
BOE-401-INST (S3B) REV. 6 (4-09)
Line 3. Diesel Fuel Used in Farming and Food Processing
For additional information for this exemption refer to publication 66, Agricultural Industry and Regulation 1533.2, Diesel Fuel Used In Farming Activities or Food Processing. Complete this line to claim a partial tax exemption for the sale, storage, use, or other consumption of diesel fuel used in farming or food processing activities. The diesel fuel must be consumed during the activities of a farming business as set forth in Internal Revenue Code (IRC) 263A or food processing. A farming business is a business that grows crops, fruit- or nut-bearing trees, sod, or nursery plants. Farming activities also include transporting these crops, fruit- or nut-bearing trees, sod, or nursery plants to the marketplace.
Line 4. Timber Harvesting Equipment and Machinery
For additional information for this exemption refer to Regulation 1534, Timber Harvesting Equipment and Machinery. Complete this line to claim a partial exemption of the sales and use tax for the sale, use, or other consumption of timber harvesting equipment, machinery, and their parts. Such equipment and machinery must be designed for use 50 percent or more of the time offroad in commercial timber harvesting and be used 50 percent or more of the time in timber harvesting. A qualified person is a person who is engaged in commercial timber harvesting. Commercial timber harvesting involves the cutting or removal, or both, of timber and other solid wood forest products from timberlands for commercial purposes. The partial exemption also applies to a qualified person's lease payments for qualified commercial timber harvesting equipment and machinery rentals payable on or after September 1, 2001. Timber is considered to be trees of any species, excluding nursery stock, harvested for forest products. Some examples of these products include firewood, Christmas trees, biomass, poles, and pilings. Typical off-road commercial harvesting equipment and machinery and their general use, that may be eligible for this partial exemption include: · Tractorsorrubbertiredskidders--movethelogsfromthewoodstotheloggingtrucks · Frontendloaders--loadlogsontotrucks · Feller-bunchers--cutverysmalltrees · CableYarders--harvesttreesonverysteepslopesbysuspendingthelogsonacable · Chippers--chipsmalllogsandbrushintoverysmallpieces · Chainsaws--usedtocutdowntrees
Line 5. Racehorse Breeding Stock
For additional information for this exemption refer to Regulation 1535, Racehorse Breeding Stock. Complete this line to claim a partial exemption of the sales and use tax for the sale, storage, use, or other consumption of "racehorse breeding stock." "Racehorse breeding stock" means racehorses capable of and purchased solely for the purpose of breeding.
Line 11, Back Page--Total Nontaxable Transactions
Line 11, back page is your total for Sections A, B, and C. Add the total from each section and enter on line 11 on the back page. Also enter the total on line 11 on the front of your return.
Lines 11 thru 26--Front Page
This is your total nontaxable transaction(s) carried over from line 11 on the back of your return. This amount will be subtracted from the total of your gross sales and purchases to arrive at the amount on which tax is calculated.
Line 12. Transactions Subject to State Tax
Subtract line 11 from line 3. Enter the result on line 12.
Line 13(a). State Tax
Multiply Line 12 by .07. For a breakdown of the state tax rate see "Detailed Description of the Sales and Use Tax Rate" located on the BOE website.
Line 13(b) Tax Recovery Adjustment
Enter the amount from Section B, box 13(b) on the back page. This adjustment is used to account for a change in the state tax rate. Only use this line if you are reporting transaction(s) that occurred at more than one tax rate in Section B on the back page.
Line 14(a). Transactions Subject to County Tax
Enter the amount from line 12. Note: If you are claiming Partial Exemptions, you must add box 61 from Section C, back page to line 12 and enter the result on line 14(a).
BOE-401-INST (S4F) REV. 6 (4-09)
STATE OF CALIFORNIA
BOARD OF EQUALIZATION
Line 14(b). County Tax 1/4 percent
Multiply line 14(a) by .0025. Enter the result on line 14(b).
Line 15. Adjustments for Local Tax (For sales or purchases for use by an aircraft common carrier)
Complete this line if you sold or purchased property for use by an aircraft common carrier, as described in Regulation 1805, Aircraft Common Carriers. If you are a multiple outlet seller, please attach a schedule showing the sales price by the place of sale. You can attach your own listing, or you can request a copy of BOE-531-X, Schedule X, Detailed Allocation by County of Sales Exempt from Combined State and Local Tax. Adjustment for Purchases If you paid state, county, and 3/4 percent local tax when purchasing property used for an exempt purpose, as described above, your purchase is exempt from the 3/4 percent local tax. Enter the purchase price of the property on line 15. Please attach a schedule showing the purchase price by county of use. You can attach your own listing, or you can request a copy of BOE-531-X, Schedule X, Detailed Allocation by County of Sales Exempt from Combined State and Local Tax, by calling 800-400-7115.
Line 16. Transactions Subject to Local Tax
The amount on line 16 will be the same as line 14(a) of the return, unless you sold or purchased property for use by an aircraft common carrier and entered an amount on line 15. Note: If you entered an amount on line 15, add or subtract the line 15 amount from line 14(a). Enter the result on line 16.
Line 17. Combined State and Local Tax 1 Percent
Multiply line 16 by .01. Enter the result on line 17. As of July 1, 2004, the 1 percent tax rate represents 1/4 percent for State Tax and 3/4 percent for Local Tax.
Line 18. District Sales and Use Tax
If your transaction(s) occured in more than one taxing jurisdiction (higher than the current 8.25% state tax rate), you must complete BOE-531-A1, Schedule A1, Computation Schedule for District Tax--Short Form, or the BOE-531-A2, Computation Schedule for District Tax--Long Form. Instructions for the schedules are included with each form.
Line 19. Total State, County, Local, and District Tax
Line 19 represents the total tax liability for this reporting period. Add lines 13(a), 13(b), 14(b), 17, and 18. Enter the result on line 19.
Line 20. Property Purchased Out of State for Use in California (credit for another state's tax charges)
Enter the amount of tax paid on this line if: · ThepropertywaspurchasedoutofstateandbroughtintoCaliforniaforuse,consumption,orstorageinthisstate,andnotforresale in the regular course of business, and · Youpaidanotherstate'ssalesorusetaxonyourpurchaseoftheproperty,and · Youarenotentitledtoataxrefundfromtheotherstate,and · Yourliabilityfortaxintheotherstate ccurredpriortoyouruse,storage,orconsumptionofthepropertyinCalifornia,and o · Youhavereportedthepurchasepriceonline2,"PurchasesSubjecttoUseTax" Notes: · TheamountofyourtaxcreditcannotexceedthetotaloftheapplicableCaliforniastate,county,localanddistricttaxesineffectatthe time of the use. For example, if you paid 9 percent sales tax charged by another state and used the property in California in an area where the total state, county, local, and district tax rate was 8.50 percent, you could not claim more than a 8.50 percent credit. · IfyouarerequiredtocompleteeitherScheduleBorC,attachaseparatedocumentfullyexplainingthecredittakenonline20,the location where the property was used, its purchase price, and the amount of tax paid in other states. · YoumayberequiredtopresentdocumentationtosubstantiatethecredittakenagainstCaliforniatax(suchasapurchaseinvoice or similar document showing the name and address of the seller, date of purchase, purchase price, and amount of sales or use tax paid). Please contact the Taxpayer Information Section at 800-400-7115 if you are uncertain as to the correct amount of credit to claim. Note:FUELSELLERS--PleasecompletetheBOE-531-G,Schedule G--Fuel Seller's Supplement to Sales and Use Tax Return, included with your sales and use tax return (B0E-401-GS). The amount entered on line G-5 of the schedule should also be entered on line 20 of the return.
Line 21. Net Tax
Subtract line 20 from line 19. Enter the result on line 21.
BOE-401-INST (S4B) REV. 6 (4-09)
Line 22. Tax Prepayments
Complete this line if you made any tax prepayments. (Businesses with average monthly taxable transactions of $17,000 or more must make prepayments, once notified by the BOE.) Enter the prepayment amounts in the proper spaces. This credit is limited to the amounts of tax prepaid and should not include penalties or interest charges reported with your prepayments. Note:FUELSELLERS--Ifyousellfuelandpaysalestaxtoyourfuelsupplier,donotusethislinetoclaimacreditforthosetax payments. Credit can be claimed on BOE-531-G, Schedule G--Fuel Seller's Supplement to Sales and Use Tax Return.
Line 23. Remaining Tax
Subtract line 22 from line 21. Enter the result on line 23.
Line 24. Penalty
If your tax payment is made, or your tax return is filed after the due date shown at the top of the return, you must pay a 10 percent penalty. Multiply line 23 by .10 and enter the result on line 24. Returns and payments must be postmarked or received by the due date of the return to be considered timely. If the due date falls on a Saturday, Sunday, or state holiday, returns postmarked or received by the next business day will be considered timely. Businesses required to pay sales and use taxes by electronic funds transfer (EFT) may also be subject to a 10 percent penalty for failure to pay by EFT (payment made by check, for example). However, a 10 percent maximum penalty applies to returns and return payments after January 1, 1997.
Line 25. Interest
If your payment is late (see line 24 instructions for an explanation of due dates), you must pay interest charges in addition to penalty charges. You owe one month's interest for each month or portion of a month the payment is overdue. For example, if your payment is one month and two weeks overdue, you owe two months' interest. Using the interest rate printed on line 25 of your return, multiply the rate times the total tax owed. Enter the result on line 25. Reminder: If you owe two or more months' interest, as described above, you must multiply the amount due by the number of months overdue.
Line 26. Total Amount Due and Payable
Add lines 23, 24, and 25. Enter the result on line 26. See page 1 for acceptable payment methods.