genesis
New Member
Posts โข 84
Likes โข 59
July 2018
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<US State> Use/Import Tax, by genesis on Jun 3, 2021 18:35:33 GMT 1, I recently received a California Respond to Letter/Inquiry by the CA Dept of Tax and Fee Administration regarding the art imports I did last year. This is the first year I am getting this.
It looks like some other US states do something similar.
Does anyone have any experience with these Use/Import Tax inquiries by the state? Any pointers?
Thank you.
I recently received a California Respond to Letter/Inquiry by the CA Dept of Tax and Fee Administration regarding the art imports I did last year. This is the first year I am getting this.
It looks like some other US states do something similar.
Does anyone have any experience with these Use/Import Tax inquiries by the state? Any pointers?
Thank you.
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Shoeless
Junior Member
Posts โข 1,106
Likes โข 620
February 2011
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<US State> Use/Import Tax, by Shoeless on Jun 3, 2021 19:24:30 GMT 1, Recently received a bill as well.
I looked into it last year but couldnโt find any info on how/when/where to pay an import tax. Bill came randomly and had interest added since it wasnโt paid last year.
I talked to the auditor assigned to my case and he basically said if I make future purchases that might be taxed, I need to go to an impossible to find web page and submit exactly what I should be taxed for. Seems a bit ridiculous.
Will take all this into consideration next time.
Donโt know if that helps at all.
Recently received a bill as well.
I looked into it last year but couldnโt find any info on how/when/where to pay an import tax. Bill came randomly and had interest added since it wasnโt paid last year.
I talked to the auditor assigned to my case and he basically said if I make future purchases that might be taxed, I need to go to an impossible to find web page and submit exactly what I should be taxed for. Seems a bit ridiculous.
Will take all this into consideration next time.
Donโt know if that helps at all.
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genesis
New Member
Posts โข 84
Likes โข 59
July 2018
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<US State> Use/Import Tax, by genesis on Jun 3, 2021 22:31:20 GMT 1, Thank you for that, it does and agreed they do bury it/intentionally hard to find! Thankfully no interest was charged for any of my purchases, but there's no clarity as to when it will be.
Another thing to account for when it comes to TCO.
Thank you for that, it does and agreed they do bury it/intentionally hard to find! Thankfully no interest was charged for any of my purchases, but there's no clarity as to when it will be.
Another thing to account for when it comes to TCO.
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<US State> Use/Import Tax, by Elephants and Castles on Jun 3, 2021 23:56:26 GMT 1, Hi, I've had a lot of experience with CA Usage tax. It's always been there but until recently CA was a bit lax on following up with people bringing art, collectibles etc into CA and the tax on them, now they've realized how much tax was getting missed they have a big team in CA tracking everyones Usage Tax. It's standard around 7-8% and if you're bringing something into CA from another state or country and haven't had tax applied the CA usage tax is applied. I found on art imports from the UK that Fedex, DHL and other couriers had to submit as part of the import / duty forms something to the states Usage tax dept stating how much the piece was and if tax had been paid. It's up to the importer to declare the piece on their taxes and pay the usage fee before the end of every tax year......so if you've brought anything into CA from another state or country then 99% you'll have to pay Usage on it and figure out where to pay. You can make an account online easily and then as your import forms are submitted by the courier they'll eventually pop up on your account and you can pay the tax through their payment portal.
www.cdtfa.ca.gov/taxes-and-fees/use-tax.htm
You can also correct any mistakes with an agent, I recently had an issue where the art piece was shown as UK pounds but was paid in US Dollars so the amount of Usage was a bit higher I submitted a paper trail and they reduced the amount. I also had a case where a clients details were mixed up with mine and I was charged usage so I worked with an agent to correct it all.
The main point here is if you bring anything into CA from another state or country without paying tax on it first you'll have to pay Usage and be responsible for doing it.
I hope that helps....
Hi, I've had a lot of experience with CA Usage tax. It's always been there but until recently CA was a bit lax on following up with people bringing art, collectibles etc into CA and the tax on them, now they've realized how much tax was getting missed they have a big team in CA tracking everyones Usage Tax. It's standard around 7-8% and if you're bringing something into CA from another state or country and haven't had tax applied the CA usage tax is applied. I found on art imports from the UK that Fedex, DHL and other couriers had to submit as part of the import / duty forms something to the states Usage tax dept stating how much the piece was and if tax had been paid. It's up to the importer to declare the piece on their taxes and pay the usage fee before the end of every tax year......so if you've brought anything into CA from another state or country then 99% you'll have to pay Usage on it and figure out where to pay. You can make an account online easily and then as your import forms are submitted by the courier they'll eventually pop up on your account and you can pay the tax through their payment portal. www.cdtfa.ca.gov/taxes-and-fees/use-tax.htmYou can also correct any mistakes with an agent, I recently had an issue where the art piece was shown as UK pounds but was paid in US Dollars so the amount of Usage was a bit higher I submitted a paper trail and they reduced the amount. I also had a case where a clients details were mixed up with mine and I was charged usage so I worked with an agent to correct it all. The main point here is if you bring anything into CA from another state or country without paying tax on it first you'll have to pay Usage and be responsible for doing it. I hope that helps.... |
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Phear Loathing
Junior Member
Posts โข 1,377
Likes โข 420
October 2010
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<US State> Use/Import Tax, by Phear Loathing on Jun 4, 2021 4:25:14 GMT 1, Iโve got hit from franchise tax board on international imports, but never domestic.
I honestly hate CA more and more every single day.
Iโve got hit from franchise tax board on international imports, but never domestic.
I honestly hate CA more and more every single day.
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Amber Halo
New Member
Posts โข 554
Likes โข 625
April 2013
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<US State> Use/Import Tax, by Amber Halo on Jun 4, 2021 5:18:48 GMT 1, Iโve got hit from franchise tax board on international imports, but never domestic. I honestly hate CA more and more every single day.
I think because it goes through customs unlike domestic packages, and California is getting aggressive on that front.
Iโve got hit from franchise tax board on international imports, but never domestic. I honestly hate CA more and more every single day. I think because it goes through customs unlike domestic packages, and California is getting aggressive on that front. |
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genesis
New Member
Posts โข 84
Likes โข 59
July 2018
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<US State> Use/Import Tax, by genesis on Jun 4, 2021 14:55:13 GMT 1, Hi, I've had a lot of experience with CA Usage tax. It's always been there but until recently CA was a bit lax on following up with people bringing art, collectibles etc into CA and the tax on them, now they've realized how much tax was getting missed they have a big team in CA tracking everyones Usage Tax. It's standard around 7-8% and if you're bringing something into CA from another state or country and haven't had tax applied the CA usage tax is applied. I found on art imports from the UK that Fedex, DHL and other couriers had to submit as part of the import / duty forms something to the states Usage tax dept stating how much the piece was and if tax had been paid. It's up to the importer to declare the piece on their taxes and pay the usage fee before the end of every tax year......so if you've brought anything into CA from another state or country then 99% you'll have to pay Usage on it and figure out where to pay. You can make an account online easily and then as your import forms are submitted by the courier they'll eventually pop up on your account and you can pay the tax through their payment portal. www.cdtfa.ca.gov/taxes-and-fees/use-tax.htmYou can also correct any mistakes with an agent, I recently had an issue where the art piece was shown as UK pounds but was paid in US Dollars so the amount of Usage was a bit higher I submitted a paper trail and they reduced the amount. I also had a case where a clients details were mixed up with mine and I was charged usage so I worked with an agent to correct it all. The main point here is if you bring anything into CA from another state or country without paying tax on it first you'll have to pay Usage and be responsible for doing it. I hope that helps....
Thank you for the reply Elephants and Castles. I noticed that there are exclusions permitted, have you ever attempted to get one if the item was potentially going to be held in storage?
Hi, I've had a lot of experience with CA Usage tax. It's always been there but until recently CA was a bit lax on following up with people bringing art, collectibles etc into CA and the tax on them, now they've realized how much tax was getting missed they have a big team in CA tracking everyones Usage Tax. It's standard around 7-8% and if you're bringing something into CA from another state or country and haven't had tax applied the CA usage tax is applied. I found on art imports from the UK that Fedex, DHL and other couriers had to submit as part of the import / duty forms something to the states Usage tax dept stating how much the piece was and if tax had been paid. It's up to the importer to declare the piece on their taxes and pay the usage fee before the end of every tax year......so if you've brought anything into CA from another state or country then 99% you'll have to pay Usage on it and figure out where to pay. You can make an account online easily and then as your import forms are submitted by the courier they'll eventually pop up on your account and you can pay the tax through their payment portal. www.cdtfa.ca.gov/taxes-and-fees/use-tax.htmYou can also correct any mistakes with an agent, I recently had an issue where the art piece was shown as UK pounds but was paid in US Dollars so the amount of Usage was a bit higher I submitted a paper trail and they reduced the amount. I also had a case where a clients details were mixed up with mine and I was charged usage so I worked with an agent to correct it all. The main point here is if you bring anything into CA from another state or country without paying tax on it first you'll have to pay Usage and be responsible for doing it. I hope that helps.... Thank you for the reply Elephants and Castles. I noticed that there are exclusions permitted, have you ever attempted to get one if the item was potentially going to be held in storage? |
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Ildefonso 77
New Member
Posts โข 311
Likes โข 109
May 2020
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<US State> Use/Import Tax, by Ildefonso 77 on Jun 4, 2021 16:27:09 GMT 1, This is going to be a bummer for me.
I hve a freigh forwarder in CA for all my logistics
Within U.S.A to Asia.
Al my EU and UK art hauls were intended to be shipped
There. Have shipped numerous stuff (collectibles) from
Galleries in HK and Japan and nothings gotten taxed.
Maybe actual artwork and paintings are different?
This is going to be a bummer for me.
I hve a freigh forwarder in CA for all my logistics
Within U.S.A to Asia.
Al my EU and UK art hauls were intended to be shipped
There. Have shipped numerous stuff (collectibles) from
Galleries in HK and Japan and nothings gotten taxed.
Maybe actual artwork and paintings are different?
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genesis
New Member
Posts โข 84
Likes โข 59
July 2018
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<US State> Use/Import Tax, by genesis on Jun 4, 2021 17:21:22 GMT 1, This is going to be a bummer for me. I hve a freigh forwarder in CA for all my logistics Within U.S.A to Asia. Al my EU and UK art hauls were intended to be shipped There. Have shipped numerous stuff (collectibles) from Galleries in HK and Japan and nothings gotten taxed. Maybe actual artwork and paintings are different?
This is going to be a bummer for me. I hve a freigh forwarder in CA for all my logistics Within U.S.A to Asia. Al my EU and UK art hauls were intended to be shipped There. Have shipped numerous stuff (collectibles) from Galleries in HK and Japan and nothings gotten taxed. Maybe actual artwork and paintings are different? If it is only in transit or temporary then you should be fine, you can easily claim an exemption you might have to provide proof of shipment out. |
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esfer
New Member
Posts โข 364
Likes โข 303
November 2019
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<US State> Use/Import Tax, by esfer on Jun 25, 2021 5:25:46 GMT 1, Imports of original artwork into the USA is duty free under most circumstances.
Read below from customs website...
Is There an Import Duty on Art?
In the majority of situations, original works of art are exempt from import fees or duties. Chapter 97 of the HTSUS defines original artwork as art that the original artist created, exclusively by hand and without any mechanical process. Therefore, mass-produced reproductions are not eligible for the same duty free exemption.
Another exception can be the frame included with the artwork. As long as the frame that accompanies the art is standard for the work of art, then the frame itself will be duty-free as well. If the frame that accompanies a work of art is not typical for that type of art, it should be classified separately according to the HTS and could be eligible for a duty fee.
I was contacted once, and I was able to talk my way out of paying taxes/ duties because prints are considered original works of art.
I don't know about usage fees though.
Imports of original artwork into the USA is duty free under most circumstances.
Read below from customs website...
Is There an Import Duty on Art?
In the majority of situations, original works of art are exempt from import fees or duties. Chapter 97 of the HTSUS defines original artwork as art that the original artist created, exclusively by hand and without any mechanical process. Therefore, mass-produced reproductions are not eligible for the same duty free exemption.
Another exception can be the frame included with the artwork. As long as the frame that accompanies the art is standard for the work of art, then the frame itself will be duty-free as well. If the frame that accompanies a work of art is not typical for that type of art, it should be classified separately according to the HTS and could be eligible for a duty fee.
I was contacted once, and I was able to talk my way out of paying taxes/ duties because prints are considered original works of art.
I don't know about usage fees though.
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