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Use Tax Incentive Program

On October 22, 2013, the City Council approved a new business incentive program that will rebate  a portion of Use Tax paid on out-of-state purchases over $500,000 and for construction projects exceeding $5 million to qualifying businesses.

To quality for the rebate companies must:

Use Tax Program

  1. Submit a Use Tax Business Incentive Program application with the City's Economic Development Department;
  2. Obtain a State of California Use Tax Direct Payment Permit or a Sub Sellers Permit; and
  3. Properly identify Stockton as the place where equipment and/or material will be used.

Once the qualifications have been met, the company will be eligible for a rebate of 15% to 25% of the net new Use Tax received over four quarters. This is a win-win for the company and for Stockton. By identifying Stockton as the jurisdiction where equipment and/or material will be used, allows the City to receive a greater percentage of the tax revenue.


For a complete explanation of the program, please review the recently adopted agenda item and ordinance.  To discuss how to participate in this program, please contact the Economic Development Department.




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This City of Stockton web page last reviewed on --- 2/20/2014