Businesses that pay use tax may be eligible to direct a large portion of 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 a 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. 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 that outlines which reimbursement method (i.e., cash rebate or business expansion credit) they would like to receive.

Submit the CDTFA-400-DP form and work with the city simultaneously to ensure successful enrollment 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 qualified for the Use Tax Rebate Program; it does not expire. Businesses will receive Use Tax reimbursements from the city in perpetuity. This helpful Use Tax Flow Chart shows the entire process step-by-step.

To learn more, contact Cailin Garcia at cgarcia@santaclarita.gov or call (661) 286-4078.