Recent amendments to California regulations dealing with sales for resale have increased the penalties for misuse of a resale certificate. Effective June 5, 2007, in addition to fines imposed at 10% or $500, whichever is greater, for improper payment or reporting of tax due, the person may be liable to additional penalties: 10% for negligence or 25% for fraud. (Reg. 1668, California State Board of Equalization, effective June 5, 2007)