While the California use tax has been around since 1935 and many individuals and businesses owe it, many people are unaware of it. Not all tax practitioners discuss this tax with clients. Attorneys and their firms are also likely to have current and prior year use tax liabilities. It is estimated that in California, over $1 billion of use tax goes uncollected annually with about 60% of the amount attributable to businesses and the rest to individuals. All states with a sales tax also have a use tax and face similar collection challenges.
