If I purchase property at a lower rate of tax, am I required to pay additional district tax if I use the property in a district with a higher tax rate?
Yes. If the property is used in a district with a higher tax rate than the rate paid at the time of purchase, the additional tax is due. Individuals may pay their additional use tax liability by using publication 79-B, California Use Tax, or on their California income tax return. Business owners that have a California sales or use tax permit are required to report and pay their additional business related use tax liabilities via their sales and use tax returns.
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