Business’s that pay taxes may be eligible to direct a large portion of their 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. 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.
Those eligible can submit the CDTFA-400-DP form and work with the city simultaneously to ensure they’re 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 qualified for the Use Tax Rebate Program; it does not expire. Qualified businesses will receive Use Tax reimbursements from the city in perpetuity.
Please contact Sue Arellano at firstname.lastname@example.org to learn more about the program.