Use Tax Business Incentive

The Use Tax Business Incentive Program provides a rebate to Stockton businesses that purchase equipment, materials, and fixtures from outside of California. When necessary forms and program requirements are met, the business can receive a rebate of up to 25% of net new use tax received by the City of Stockton.   

 

Eligibility Requirements:

  • Any person doing business within Stockton City limits;
  • Purchases made outside of California that exceed $500,000 or constructions projects over $5 million;
  • Person/business submits application to the City of Stockton’s Economic Development Department;
  • Person/business obtains State of California Use Tax Direct Payment Permit or a Sub Sellers Permit; 

AND

  • City of Stockton is identified in the permit as the jurisdiction in which the items will have their first functional use or where they will be consumed or stored.

This rebate program is designed to reward Stockton businesses with incentive rebates, as well as allocate additional funding from use tax to the City of Stockton, both of which stimulate our local economy.  

There is no cost to participate in the program nor will a business pay more tax than they would normally. 

  • City will determine a baseline of use tax received from business by selecting the highest amount of use tax received from that taxpayer over a three-year period, from the time of application submittal. 
  • Rebate will be paid to the business bi-annually based on 15% of the net new use tax received up to $200,000.
  • City will adjust the rebate percentage after four consecutive quarters. 

Use Tax Business Incentive Program - Application

Use Tax Incentive - Ordinance

 

External Links


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This City of Stockton web page last reviewed on --- 8/14/2017