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Use Tax Incentive Program

On October 22, 2013, the City Council approved a business incentive program to rebate a portion of Use Tax paid on out-of-state purchases over $500,000 and for construction projects exceeding $5 million to qualifying businesses


To quality for the rebate companies must:

Use Tax Program

  1. Submit a Use Tax Business Incentive Program application with the City's Economic Development Department;
  2. Obtain a State of California Use Tax Direct Payment Permit or a Sub Sellers Permit, and
  3. Properly identify Stockton as the place where equipment and/or material will be used.

Once you meet the qualifications, your company is eligible for a rebate of 15% to 25% of the net new Use Tax received over four quarters.


This is a win-win for the company and for Stockton.  When you identify Stockton as the jurisdiction where equipment and/or material will be used, this allows the City to receive a greater percentage of the tax revenue.


For a complete explanation of the program, please review this adopted agenda item and ordinance


To discuss how to participate in this program, please contact the Economic Development Department.




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This City of Stockton web page last reviewed on --- 5/14/2015