New Penalty on Shopping Abroad : California: The state’s controversial tax on items purchased in foreign countries and exceeding $400 in value will be reimposed next month.

The purchases that travelers make while abroad and bring back to California may wind up more costly than anticipated as of Oct. 1. That’s when the state’s Board of Equalization is re-imposing its controversial use tax.

Based on a once-obscure 1935 law designed to protect state businesses from tax-free, out-of-state competition, the use tax mandates that residents returning to California pay a tax on their purchases.

The extent of the tax depends on which county travelers live in. Through the end of this year, the tax will vary from 6.25% to 7.25%, dropping down to 6% or 7% in 1991. The current applicable tax rate in Los Angeles County is 6.75%.

The Board of Equalization anticipates sending approximately 30,000 tax forms annually to residents returning through California ports of entry, and to get an average payment of $218 in return. If your U.S. Customs declaration indicates that you are subject to the use tax, expect to get the unwelcome statement within two to six months after clearing customs.

Revenue from the use tax is expected to exceed $6 million each year, with the funds targeted to support other state and local government services.

Travelers aren’t affected by the use tax unless they bring back purchased items valued more than $400. If the goods are less than this amount, travelers are not required to itemize the possessions on their customs declaration form or pay duty on them. The board also won’t bother collecting taxes on relatively small amounts due, although it declined to say what this sum is.

“The statements will be sent out on a continuous basis around mid-month,” said board spokeswoman Delena Bratton. Travelers will have until the end of the following month, roughly 30 to 45 days, to pay the amount due. A penalty of 10% will be imposed on late payments.

The board actually began enforcement of the use tax late last year. But lack of prior notice created a furor and the program was suspended. At the time, the board said that there would be substantial notice given to consumers if the program were reinstated.

Now the board, with funding provided in the 1990-91 state budget, is going about matters differently. News releases announcing the reimposition of the use tax were sent to the media. Travel agencies also have been notified and posters were supposed to be sent to airports around the state.

The new statements, still under preparation, will also explain how travelers can claim exemptions, the most common of which are gifts.

Exemptions are based on the retail values of the goods where they were purchased, not their U.S. values. To be exempt, travelers must have been out of the United States for at least 48 hours and must not have claimed an exemption within the last 30 days.

On returning from Canada within 48 hours, there is only a $25 exemption per person. On returning from Mexico, the exemption is $400 if the stay was less than 48 hours, but the 30-day limitation still applies.

Those coming back from a U.S. territory, such as the U.S. Virgin Islands, Guam or American Samoa, will find the exemption raised, as of Sept. 4, from $400 to $800. But more than half of the goods must have been purchased in the U.S. possession to get the higher $800 exemption.

For example, if you’ve been on a Caribbean cruise and purchased $600 worth of goods on the Dutch island of Curacao and $200 on St. Thomas in the U.S. Virgin Islands. Your exemption on the Curacao-bought items would be $400, with a total exemption on the St. Thomas goods.

The head of a family can still make a joint declaration for all members of his or her family (if living in the same household). This means that a family of four (even with two minors) can bring in $1,600 worth of items without paying duty.

While customs requires you to declare the estimated value of all goods, including gifts, the use tax only covers purchases.

“This is one of the problems with the use tax,” said Susan Tanzman-Kaplan, president of the Southern California chapter of the American Society of Travel Agents. “What if people bring back gifts that make the value of their goods go over $400, the amount on which you start paying duty? The customs form doesn’t have space to separate purchases from gifts.”

One of the loopholes in enforcement of the use tax is returning to the United States from a non-California gateway, then taking a connecting flight to California.

“We won’t initially be monitoring out-of-state gateways, but we’re talking about reciprocal arrangements with other areas,” said Dennis Fox, another board spokesman.

Another possible way to skirt the use tax comes through the Generalized System of Preferences (GSP). Under this program, the United States aids developing nations by allowing some of their products to be brought in duty-free. These items must be purchased in the country that produced them.

More than 70 destinations around the world are affiliated with this program, including Antigua, Brazil, Congo, Costa Rica, Egypt, Mexico, Nepal, Pakistan, the Philippines, Turkey and Uganda. Products range from jewelry and furniture to chinaware and carvings. Customs provides a free brochure, “GSP & the Traveler,” which explains the program.

Some relief from the use tax may soon emerge. A bill (SB2455), introduced by State Sen. Rebecca Morgan (R-Menlo Park), would decrease the impact of the use tax by exempting travelers from the first $400 in goods. In effect, counting the $400 that already doesn’t have to be itemized, this would spare consumers a use tax on $800 ($1,200 from U.S. possessions and territories).

For more information about the use tax on items purchased abroad, contact the state Board of Equalization’s Occasional Sales Unit, 1725 23rd St., Sacramento 94287-0001, (916) 445-9524.