Does your business pay Use Tax? If so you may be eligible to direct a large portion of your Use Tax back to Santa Clarita’s general fund for public safety, parks, libraries, infrastructure and other City services and receive a cash rebate on a portion of the Use Tax remitted to the City.
Businesses that participate in the rebate program can receive Use Tax reimbursements in two different ways:
- Receive a cash rebate equal to 25% of the additional Use Tax remitted to the City; or
- Receive a business expansion credit to be used for City permit fees equal to 45% of the additional Use Tax remitted to the City.
It’s simple application process! Eligible Santa Clarita firms will complete Form 400-DP to apply for the Use Tax Direct Payment Permit program with the Board of Equalization (BOE). At the same time, firms will work directly with the City staff to sign a Memorandum of Understanding (MOU) that outlines which reimbursement method (i.e., cash rebate or business expansion credit) they would like to receive.
You can submit the BOE Form 400-DP and work with the City simultaneously to ensure you are successfully enrolled in the program. Please note that a Santa Clarita business must have made purchases subject to Use Tax in the amount of $500,000 in a 12-month period prior to permit application to qualify.
The great news is that once you qualify for the Use Tax Rebate Program; it does not expire! You will receive Use Tax reimbursements from the City in perpetuity. You can download the City's Use Tax Rebate Program brochure here.
Please contact the SCVEDC staff to learn more about the program. We would be happy to sit down with you and help you complete the forms. Have a great day.