About $1 billion in use taxes go unpaid every year in California, according to a report issued to lawmakers today from the nonpartisan legislative analyst.

Use taxes are similar to sales taxes but are typically charged on out-of-state purchases, many of which are made over the Internet. Unlike sales taxes, which are collected by the seller and sent to the state Board of Equalization, use taxes are supposed to be paid by the buyer. But the legislative analyst says that the best estimate is that only about 1 percent of use taxes owed are ever paid.

Download the full report here.

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This entry was posted on Monday, February 28th, 2011 at 6:07 pm and is filed under California Budget Watch. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.