California Removes $100,000 Threshold for Use Tax Registration in New Legislation

• California has amended its legislation regarding registration for use tax
• Previously, qualified purchasers had to register with the CDTFA if they received at least $100,000 in gross receipts from business operations in a calendar year
• The new requirements remove the $100,000 condition and add a new condition of making more than $10,000 in purchases subject to use tax in a calendar year
• The legislation does not apply to the purchase of vehicles, vessels, or aircraft
• The amendment was signed by California Gov. Gavin Newsom on October 7, 2023
• The effective date of the legislation is expected to be January 1, 2024
• The legislation will sunset on January 1, 2029.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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