Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2012
 

Sales And Use Tax Law

CHAPTER 3.5. VEHICLES, VESSELS, AND AIRCRAFT *

* Chapter 3.5 was added by Stats. 1965, p. 5443, operative August 1, 1965.

CHAPTER 3.5. VEHICLES, VESSELS, AND AIRCRAFT *

Article 1. Definitions

6271. Construction. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this chapter.

6272. "Vehicle." "Vehicle" is as defined in Section 670 of the Vehicle Code and shall include off-highway motor vehicles subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code.

History.—Stats. 1971, p. 3923, in effect December 23, 1971, operative July 1, 1972, added, "and shall include offhighway motor vehicles subject to identification under Division 16.5 (commencing with section 38000) of the Vehicle Code."

6273. "Vessel." "Vessel" means any boat, ship, barge, craft, or floating thing designed for navigation in the water except:

(a) A seaplane,

(b) A watercraft specifically designed to operate on a permanently fixed course, the movement of which is restricted to or guided on such permanently fixed course by means of a mechanical device on a fixed track or arm to which the watercraft is attached or by which the watercraft is controlled, or by means of a mechanical device attached to the watercraft itself,

(c) A watercraft of a type designed to be propelled solely by oars or paddles,

(d) A watercraft of eight feet or less in length of a type designed to be propelled by sail.

A motor or other component of a vessel, whether or not detachable, shall be deemed to be part of the vessel when sold therewith.

History.—Stats. 1971, p. 3526, operative January 1, 1972, completely revised (b).

6274. "Aircraft." "Aircraft" means any contrivance designed for powered navigation in the air except a rocket or missile.

History.—Stats. 1982, Ch. 1589, in effect January 1, 1983, deleted "powered" before "contrivance" and added "powered" before "navigation."

Replacement Parts.—"Aircraft" is not to be interpreted to include replacement parts thereof. National Aircraft Leasing, Ltd. v. State Board of Equalization (1979) 90 Cal.App.3d 549.

6275. Retailer of vehicle, vessel, or aircraft. (a) Every person making any retail sale of a mobilehome or commercial coach required to be registered annually under the Health and Safety Code, or of a vehicle required to be registered under the Vehicle Code or subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code, or a vehicle that qualifies under the permanent trailer identification plate program pursuant to subdivision (a) of Section 5014.1 of the Vehicle Code, or of a vessel or an aircraft as defined in this article, is a retailer for the purposes of this part of the vehicle, vessel or aircraft, regardless of whether he or she is a retailer by reason of other provisions of this part, unless another person is the retailer, as provided in subdivision (b).

(b) Every person, licensed or certificated under the Health and Safety Code or the Vehicle Code as a dealer, is the retailer of a mobilehome or commercial coach required to be registered annually under the Health and Safety Code or of a vehicle required to be registered under the Vehicle Code or subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code or a vehicle that qualifies under the permanent trailer identification plate program pursuant to subdivision (a) of Section 5014.1 of the Vehicle Code, when a retail sale of the vehicle is made through him or her and that person provides to the Department of Housing and Community Development or the Department of Motor Vehicles a notice of transfer with respect to the vehicle pursuant to Section 18080.5 of the Health and Safety Code or Section 5901 or Section 38200 of the Vehicle Code. That person shall hold a seller's permit and remit tax to the board with respect to those sales in the same manner as a dealer licensed or certificated under the Vehicle Code and making sales on his or her own account. For purposes of this subdivision, "sale" does not include a lease.

History.—Stats. 1971, p. 3923, in effect December 23, 1971, operative July 1, 1972, added "or subject to identification under Division 16.5 (commencing with section 38000) of the Vehicle Code." Stats. 1975, Ch. 711, in effect January 1, 1976, added phrase in (a) beginning "unless another" and subdivision (b). Stats. 1981, Ch. 975, in effect January 1, 1982, added "of a mobilehome. . . . Safety Code, or" after "retail sale" and "or she" after "he" in subdivision (a); added "the Health and Safety Code or" before the first "the Vehicle Code," "of a mobilehome. . . . Safety Code, or" after "retailer," "or her" after "him," substituted "that" for "such" before "person", added "Department of Housing and Community Development or the" before "Department of Motor Vehicles," and added "Section 18076.1 of the Health and Safety Code or" before "Section 5901" in the first sentence of; and, substituted "That" for "Such" before, and "shall" for "must" after "person", "those" for "such" before the first "sales", and added "or her" after "his" in the second sentence in subdivision (b). Stats. 1991, Ch. 236, in effect July 29, 1991, substituted "18080.5" for "18076.1" after "pursuant to Section" in subdivision (b). Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000, added "or a vehicle . . . Vehicle Code" after "Vehicle Code" in subdivisions (a) and (b).

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6276. Presumption that sales price is market value. [Repealed by Stats. 1991, Ch. 87, in effect June 30, 1991, operative August 1, 1991.]

6276.1. Mobilehomes; current value. (a) For purposes of Section 6276, "sales price" of a used mobilehome, as defined in Section 18014 of the Health and Safety Code shall be based on the current value of the used mobilehome as specified by a recognized value guide. If the value guide does not specify the model or manufacturer of a used mobilehome the value of the used mobilehome shall be established by reference to the highest value in the value guide according to age and size or the actual sales price, whichever is less. If the actual sales price of a used mobilehome is less than the current value specified in the value guide, the "sales price" shall be based on the actual sales price of the mobilehome as evidenced by the purchase documents. The State Board of Equalization shall approve the value guides for use within this state through regulation.

(b) For purposes of Section 6276, "sales price" of a mobilehome, whether new or used, shall exclude the amount of separately stated escrow fees on the sale of the mobilehome.

(c) For the purposes of this section, the "actual sales price" means the total contract price, including, but not limited to, the value of the mobilehome, its in place location value, awning, skirting, carport, patio, landscaping, shrubs, unattached furnishings, or other items not part of the mobilehome, and documentation fees.

History.—Added by Stats. 1979, Ch. 863, effective January 1, 1980. Stats. 1981, Ch. 975, in effect January 1, 1982, added "Sections 18008 and 18221 of the Health and Safety Code or" before "Sections 396" and "Health and Safety Code or the" before the second "Vehicle Code" in subdivision (a), and substituted "the" for "such" after "sale of" in subdivision (b). Stats. 1982, Ch. 1591, in effect September 30, 1982, operative January 1, 1983, deleted "or Sections 396 and 665 of the Vehicle Code" before "shall" and substituted "be based . . . regulation" for "exclude . . . Professions Code" after "shall" in subdivision (a), and added subdivision "(c)". Stats. 1984, Ch. 932, effective September 7, 1984, operative January 1, 1985. Deleted "18008" before "18014" and substituted "specified" for "determined" in first sentence in (a), added sentence "If . . . documents," before last sentence in (a). Stats. 1985, Ch. 1539, effective January 1, 1986, deleted "age" after "specify the", substituted "or" for "and" after "model," deleted "or if" after "mobilehome," and added "the value . . . is less" in subdivision (a), deleted repeal language and added "For the . . . documentation fees" in subdivision (c).

6276.1. Mobilehomes; exclusions. [Repealed by Stats. 1985, Ch. 1539, effective January 1, 1986.]

6277. Presumption on sale to lessee. There shall be a presumption that a transfer of a vehicle to a lessee by a lessor, as defined in Section 372 of the Vehicle Code, was a sale for resale if the lessee transfers title and registration to a third party within 10 days from the date the lessee acquired title from the lessor at the expiration or termination of a lease. The presumption may be rebutted by evidence that the sale was not for resale prior to use.

History.—Added by Stats. 1976, Ch. 1284, operative March 23, 1977.

Article 2. Special Exemptions


6281. Substantially same ownership after transfer. There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, a mobilehome or commercial coach required to be annually registered under the Health and Safety Code, or a vehicle required to be registered under the Vehicle Code or subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code, or a vessel or aircraft, when such property is included in any transfer of all or substantially all the property held or used in the course of business activities of the person selling the property and when after such transfer the real or ultimate ownership of such property is substantially similar to that which existed before such transfer. For the purposes of this section, stockholders, bondholders, partners, or other persons holding an interest in a corporation or other entity are regarded as having the "real or ultimate ownership" of the property of that corporation or other entity.

History.—Stats. 1969, p. 999, in effect November 10, 1969, substituted "business activities" for "a business activity". Stats. 1971, p. 3923, in effect December 23, 1971, operative July 1, 1972 added, "or subject to identification under Division 16.5 (commencing with section 38000) of the Vehicle Code." Stats. 1981, Ch. 975, in effect January 1, 1982, added "a mobilehome . . . Safety Code, or" before "a vehicle" in the first sentence and substituted "that" for "such" after "property of" in the second sentence.

6282. Vehicles; manufacturer, remanufacturer, dealer, dismantler, or lessor-retailer. There are exempted from the computation of the amount of the sales tax the gross receipts from sales of mobilehomes or commercial coaches required to be annually registered under the Health and Safety Code or vehicles required to be registered under the Vehicle Code when the retailer is other than a person licensed or certificated pursuant to the Health and Safety Code or the Vehicle Code as a manufacturer, remanufacturer, dealer, dismantler, or lessor-retailer, subject to Section 11615.5 of the Vehicle Code.

This exemption does not extend to the rentals payable under a lease of tangible personal property.

History.—Stats. 1966, p. 186, in effect April 18, 1966, operative July 1, 1966, added last sentence. Stats. 1976, Ch. 1284, operative March 23, 1977, changed "manufacturer, dealer, or dismantler" to "manufacturer, dealer, dismantler, or lessor-retailer, subject to the provisions of Section 11615.5 of the Vehicle Code." Stats. 1981, Ch. 975, in effect January 1, 1982, added "mobilehomes . . . Safety Code, or" before "vehicles" and "the Health and Safety Code or" before "the second Vehicle Code" in the first sentence of the first paragraph. Stats. 1983, Ch. 1286, in effect January 1, 1984, added "remanufacturer" after "manufacturer" in the first paragraph.

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6283. Vessels and aircraft; sellers. (a) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale in this state of a vehicle subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code or of a vessel or of an aircraft when the retailer is other than a person required to hold a seller's permit pursuant to Article 2 (commencing with Section 6066) of Chapter 2 by reason of the number, scope, and character of his or her sales of those vehicles, vessels, or of aircraft, as the case may be.

(b) The exemption provided in subdivision (a) shall not apply to either of the following:

(1) Any sale of a vehicle required to be identified under Division 16.5 (commencing with Section 38000) of the Vehicle Code when the retailer is a person licensed or certificated pursuant to the Vehicle Code as a manufacturer, remanufacturer, dealer, or dismantler.

(2) Any sale of a vessel or an aircraft when a broker arranges the sale between two private parties and the broker collects sales tax reimbursement on the transaction.

History.—Stats. 1967, p. 2062, in effect November 8, 1967, substituted "required to hold" for "holding" and added all language following "Chapter 2 of this part." Stats. 1971, p. 3924, in effect December 23, 1971, operative July 1, 1972 added "vehicle subject to identification under Division 16.5 (commencing with section 38000) of the Vehicle Code or of a" following "from the sale of a". Stats. 1972, Ch. 973, effective August 16, 1972, added "(commencing with Section 6066)" to the first sentence, and added the second sentence. Stats. 1983, Ch. 1286, in effect January 1, 1984, deleted "of this part" after "Chapter 2," added "or her" after "his" and substituted "those" for "such" after "or sales" in the first sentence and added "remanufacturer" after "manufacturer" in the second sentence. Stats. 1995, Ch. 555, in effect January 1, 1996, added subdivision letter designation (a) before first paragraph, and added "in this state" after "the sale" in the first sentence of subdivision (a); created new subdivision (b) with the former second sentence of subdivision (a) and substituted "The" for "This" before "exemption", substituted "provided in subdivision (a) shall" for "does" after "exemption", and substituted "either of the following" for "sales of vehicles" therein; created new pragraph (1) with the balance of the second sentence beginning with "required" and added "Any sale of a vehicle" before "required" therein; and added paragraph (2) to subdivision (b).

6284. Seller's permit requirements. If a person is engaged in the business of selling vehicles, mobilehomes, commercial coaches, vessels or aircraft he or she shall not be excused from the requirements of Article 2 (commencing with Section 6066) of Chapter 2 of this part, by reason of the exemptions provided in Sections 6282 and 6283.

History.—Stats. 1982, Ch. 1589, in effect January 1, 1983, added "mobilehomes, commercial coaches," after "vehicles," "or she" after "he," and "(commencing with Section 6066)" after "Article 2" in the first sentence.

6285. Family. There are exempted from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of a mobilehome or commercial coach required to be registered annually under the Health and Safety Code, or of a vehicle required to be registered under the Vehicle Code, or of a vehicle subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code, or a vehicle that qualifies under the permanent trailer identification plate program pursuant to subdivision (a) of Section 5014.1 of the Vehicle Code, or of a vessel or an aircraft, when either of the following occurs:

(a) The person selling the property is either the parent, grandparent, child, grandchild, or spouse, or the brother or sister if the sale between that brother or sister is between two minors related by blood or adoption, of the purchaser, and the person selling is not engaged in the business of selling the type of property for which the exemption is claimed.

(b) The sale is to a revocable trust in which all of the following occur:

(1) The seller has an unrestricted power to revoke the trust.

(2) The sale does not result in any change in the beneficial ownership of the property.

(3) The trust provides that upon revocation the property will revert wholly to the seller.

(4) The only consideration for the sale is the assumption by the trust of an existing loan for which the tangible personal property being transferred is the sole collateral for the assumed loan.

History.—Stats. 1969, p. 1348, in effect November 10, 1969, added "or the brother or sister . . . or adoption". Stats. 1971, p. 3924, in effect December 23, 1971, operative July 1, 1972, added, "or of a vehicle subject to identification under Division 16.5 (commencing with section 38000) of the Vehicle Code." Stats. 1981, Ch. 975, in effect January 1, 1982, added "a mobilehome . . . Safety Code, or of" after "state of" and substituted "that" for "such" before the second "brother" in the first sentence. Stats. 1982, Ch. 664, in effect January 1, 1983, added "grandchild" after "child" in the first sentence. Stats. 1993, Ch. 1109, in effect January 1, 1994, substituted "when the following occurs . . . for the assumed loan" for "when the person . . . exemption is claimed" following ''aircraft" in the first paragraph. Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000, added "or a Vehicle . . . Vehicle Code, or" after "Vehicle Code or" in the first paragraph.

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Article 3. Auxiliary Collection Provisions

6291. Due date; interest and penalties. Notwithstanding Section 6451, the use taxes imposed by this part with respect to the storage, use or other consumption in this state of a mobilehome or commercial coach required to be registered annually under the Health and Safety Code, or of a vehicle required to be registered under the Vehicle Code, or of a vehicle subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code, or a vehicle that qualifies under the permanent trailer identification plate program pursuant to subdivision (a) of Section 5014.1 of the Vehicle Code, or of a vessel or an aircraft as defined in this chapter are due and payable by the purchaser at the time the storage, use, or other consumption of the property first becomes taxable. Delinquency penalties and interest with respect to use tax for mobilehomes or commercial coaches registered annually with the Department of Housing and Community Development or for vehicles registered with the Department of Motor Vehicles shall be as provided in Section 6292. Delinquency penalties and interest with respect to use tax for vehicles subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code or a vehicle that qualifies under the permanent trailer identification plate program pursuant to subdivision (a) of Section 5014.1 of the Vehicle Code shall be as provided in Section 6293. Delinquency penalties and interest with respect to use tax for vessels and aircraft shall be imposed as if the due date of the tax were fixed by Section 6451.

History.—Stats. 1971, p. 3924, in effect December 23, 1971, operative July 1, 1972, added "or a vehicle subject to identification under Division 16.5 (commencing with section 38000) of the Vehicle Code." to first sentence, added provision for delinquency penalties and interest with respect to use tax for vehicles required to be identified under Division 16.5 (commencing with section 38000) of the Vehicle Code by reference to section 6293. Stats. 1981,Ch. 975, in effect January 1, 1982, substituted "a mobilehome . . . Safety Code, or of a vehicle" for "vehicles" after "state of" and "or of a vessel or an aircraft" for "and of vessels and aircraft" before "as defined" in the first sentence, and added "mobilehomes . . . Development or for" before "vehicles" in the second sentence. Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000, added "or a vehicle . . . Vehicle Code" after "Vehicle Code or" in the first sentence, and added "or a vehicle . . . Vehicle Code" after "Vehicle Code" in the third sentence.

6292. Registration; Department of Motor Vehicles. (a) Except when the sale is by lease, when a mobilehome or commercial coach required to be registered annually under the Health and Safety Code or a vehicle required to be registered under the Vehicle Code is sold at retail by other than a person licensed or certificated pursuant to the Health and Safety Code or the Vehicle Code as a manufacturer, remanufacturer, dealer, dismantler, or lessor-retailer, subject to Section 11615.5 of the Vehicle Code, the retailer is not required or authorized to collect the use tax from the purchaser, but the purchaser of the vehicle shall pay the use tax to the Department of Housing and Community Development acting for and on behalf of the board pursuant to Section 18123 of the Health and Safety Code or to the Department of Motor Vehicles acting for and on behalf of the board pursuant to Section 4750.5 of the Vehicle Code.

(b) If the purchaser makes an application to either department which is not timely, and is subject to penalty because of delinquency in effecting registration or transfer of registration of the vehicle, he or she then becomes liable also for penalty as specified in Section 6591, but no interest shall accrue.

(c) Application to the appropriate department by the purchaser relieves the purchaser of the obligation to file a return with the board under Section 6452.

(d) If the purchaser does not make application to either department, or does not pay the amount of use tax due, or files a return with the board under Section 6455 which is not timely, interest and penalties shall apply with respect to the unpaid amount as provided in Chapter 5 (commencing with Section 6451).

History.—Stats. 1966, p. 186, in effect April 18, 1966, operative July 1, 1966, added "Except when the sale is by lease," to (a). Stats. 1976, Ch. 1284, operative March 23, 1977, changed "manufacturer, dealer, or dismantler" to "manufacturer, dealer, dismantler, or lessor-retailer, subject to the provisions of Section 11615.5 of the Vehicle Code." Stats. 1977, Ch. 607, operative January 1, 1978, in paragraph (b) changed "does not make timely application to that department, but" to read "makes an application to that department which is not timely, and" and added new paragraph (d). Stats. 1981, Ch. 975, in effect January 1, 1982, added "a mobilehome . . . Safety Code or" before "a vehicle," "the Health and Safety Code or" before the second "the Vehicle Code," and "the Department of Housing . . . Safety Code or to" before "the Department of Motor Vehicles in subdivision (a); substituted "either" for "that" before "department", added "or she" after "he", and deleted "of this code" after "Section 6591" in subdivision (b); substituted "the appropriate" for "that" before "department" in subdivision (c); and, substituted "either" for "that" before "department" and deleted "of this part" after "Section 6451)" in subdivision (d). Stats. 1983, Ch. 1286, in effect January 1, 1984, added "remanufacturer" after "manufacturer" and substituted "shall" for "must" before "pay" in subdivision (a), and substituted "relieves" for "shall relieve" after the first "purchaser" in subdivision (c). Stats. 1991, Ch. 236, in effect July 29, 1991, substituted "18123" for "18076.15" after "pursuant to Section" in subdivision (a).

Purchases of vehicles subject to existing leases.—Leasing companies' purchases of vehicles subject to existing leases are taxable; consideration paid was the assumption of remaining unpaid liability for original purchase price. Newco Leasing, Inc. v. State Board of Equalization (1983) 143 Cal.App.3d 120.

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6293. Vehicle subject to identification; Department of Motor Vehicles. (a) Except when the sale is by lease, when a vehicle subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code or a vehicle that qualifies under the permanent trailer identification plate program pursuant to subdivision (a) of Section 5014.1 of the Vehicle Code, is sold at retail by other than a person licensed or certificated pursuant to the Vehicle Code as a manufacturer, remanufacturer, dealer, dismantler, or lessor-retailer, subject to Section 11615.5 of the Vehicle Code, or a person required to hold a seller's permit pursuant to Article 2 (commencing with Section 6066) of Chapter 2 by reason of the number, scope, and character of his or her sales of those vehicles, the retailer is not required or authorized to collect the use tax from the purchaser, but the purchaser of the vehicle shall pay the use tax to the Department of Motor Vehicles acting for and on behalf of the board pursuant to Section 38211 of the Vehicle Code.

(b) If the purchaser makes an application to that department which is not timely, and is subject to penalty because of delinquency in effecting identification or transfer of ownership of the vehicle, he or she then becomes liable also for penalty as specified in Section 6591 of this code, but no interest shall accrue.

(c) Application to that department by the purchaser relieves the purchaser of the obligation to file a return with the board under Section 6452.

(d) If the purchaser does not make application to that department, or does not pay the amount of use tax due, or files a return with the board under Section 6455 which is not timely, interest and penalties shall apply with respect to the unpaid amount as provided in Chapter 5 (commencing with Section 6451).

History.—Added by Stats. 1971, p. 3925, in effect December 23, 1971, operative July 1, 1972. Stats. 1972, Ch. 973, effective August 16, 1972, inserted "licensed or certificated pursuant to the Vehicle Code as a manufacturer, dealer or dismantler or a person required to hold a seller's permit pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of this part by reason of the number, scope, and character of his sales of such vehicles" in place of "holding a seller's permit issued under Section 6067." Stats. 1976, Ch. 1284, operative March 23, 1977, changed "manufacturer, dealer, or dismantler" to "manufacturer, dealer, dismantler, or lessor-retailer, subject to the provisions of Section 11615.5 of the Vehicle Code." Stats. 1977, Ch. 607, operative January 1, 1978, changed "does not make timely application to that department, but" to read "makes an application to that department which is not timely, and", and added new paragraph (d). Stats. 1983, Ch. 1286, in effect January 1, 1984, added "remanufacturer" after "manufacturer," deleted "the provisions of" after "subject to" and "of this part" after "Chapter 2," added "or her" after "his," and substituted "those" for "such" after "sales of" in subdivision (a); added "or she" after "he" in subdivision (b); substituted "relieves" for "shall relieve" after the first "purchaser" in subdivision (c); and, deleted "of this part" after "Section 6451)" in subdivision (d). Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000, added "or a vehicle . . . Vehicle Code" after "Vehicle Code" in subdivision (a).

6294. Undocumented vessel subject to identification; Department of Motor Vehicles. (a) When an undocumented vessel required to be registered under the Vehicle Code is sold at retail by other than a person holding a seller's permit and regularly engaged in the business of selling vessels, the retailer is not required or authorized to collect the use tax from the purchaser, but the purchaser of the vessel must pay the use tax to the Department of Motor Vehicles acting for, and on behalf of, the board pursuant to Section 9928 of the Vehicle Code.

(b) If the purchaser makes an application to the department which is not timely, and is subject to penalty because of delinquency in effecting then becomes liable also for penalty as specified in Section 6591, but no interest shall accrue.

(c) Application to the department by the purchaser shall relieve the purchaser of the obligation to file a return with the board under Section 6452.

(d) If the purchaser does not make application to either department, or does not pay the amount of use tax due, or files a return with the board under Section 6455 which is not timely, interest and penalties shall apply with respect to the unpaid amount as provided in Chapter 5 (commencing with Section 6451).

History.—Added by Stats. 1982, Ch. 665, in effect January 1, 1983.

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