![]() You can look up a tax rate by address or by city and county.įor example, you purchased a log cabin kit for $100,000 from an out-of-state vendor who did not charge you the California tax. We offer several tools to help you identify the correct tax rate. The use tax is calculated by multiplying the purchase price by the applicable tax rate. The use tax rate is the same as the sales tax rate where the home will be built. The use tax is due on the purchase price of the home package for use in the state but purchased from an out-of-state vendor who did not collect the tax. The property tax is collected by the county and it is based on the assessed value of the real property. Use TaxĮven though you may have already paid property tax on your log home or log cabin kit, use tax may still apply. If you still choose to not comply, an estimated billing may be issued based on the best information available to the CDTFA. The CDTFA will give you ample time to provide evidence showing tax was paid on your log home or log cabin kit. If you cannot locate your purchase records, contact the out-of-state manufacturer or vendor and request a copy of the invoice. This will suffice as evidence you paid tax on your purchase of your log home or log cabin kit. If you have already paid tax to your vendor, simply provide the CDTFA a copy of the invoice and proof of payment showing California tax paid. However by law, the CDTFA can assess use tax up to 8 years from the date the tax was due. The CDTFA makes every attempt to contact home owners as soon as information regarding use tax becomes available. Individual consumers report the use tax on a yearly basis with a due date of April 15 th. If you did not report the use tax to the Franchise Tax Board (FTB) for the tax year you purchased the package or to the CDTFA by the date the tax was due, you may be contacted by the CDTFA to either pay the use tax or show evidence of the use tax paid. The CDTFA reviews county building records to contact home owners regarding the use tax. If you are a home owner who purchased a log home or log cabin kit from an out-of-state vendor without paying tax, you are required to report and pay the use tax on your purchase to the California Department of Tax and Fee Administration (CDTFA).įor more information, go to Use Tax – What You Should Know, and publication 110, California Use Tax Basics. However, when you purchase an item from a vendor located outside California who ships the property to California and is not required to collect California tax, use tax applies. Generally the vendor will charge sales tax if the sale is made in California. When you purchase an unassembled log home or log cabin kit, you are purchasing tangible personal property that is subject to tax. On the other hand, sales of tangible personal property, that is, property that can be seen, weighed, measured, or touched, is generally subject to sales or use tax. Generally sales of real property such as land or a building in California are not subject to sales or use tax. The intention of this guide is to help home owners understand how the use tax applies to their out-of-state purchases of log home or log cabin kits. We understand that the use tax concept can be confusing to some people who make purchases from out-of-state retailers. Tax Guide for Purchases of Log Home or Log Cabin Kit
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