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 CDTFA-400-DP form to apply for the Use Tax Direct Payment Permit program with the California Department of Tax and Fee Administration (CDTFA). A guide for applying for Direct Payment Permits can be found HERE. 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 CDTFA-400-DP form 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. This helpful Use Tax Flow Chart shows the entire process step-by-step.
Please contact Sue Arellano at email@example.com to learn more about the program. We would be happy to sit down with you and help you complete the forms.