Currently, the state allows qualified purchasers within California, who are not otherwise required to hold a seller’s permit, to report and pay their use tax liability with a three-year statute of limitations. However, with the expiration of California Code Sec. 6487.06, the statute of limitations will be extended to eight years. Generally, use tax applies when a person or business in California purchases tangible merchandise from a retailer outside of California that will be used, consumed, given away, or stored in California. The In-State Voluntary Disclosure Program should not be confused with California’s Unregistered Out-Of-State Businesses with Nexus in California – Voluntary Disclosure Program. Under this program, the three-year statute of limitations remains unchanged. Additional rules and regulations apply. (Special Notice L-178, California State Board of Equalization)