Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 295.0379


295.0379 North Atlantic Treaty Status of Forces Agreement (NATOSF). A member of Spain's Air Force claims that his purchase of an automobile from a dealer is not subject to sales tax pursuant to Article Ten of the North Atlantic Treaty Status of Forces Agreement (NATOSF). The NATOSF agreement provides NATO personnel who are members of a force under the NATO Agreement may have an exemption from taxation on salary and tangible movable property, that is, from annual recurring taxes such as ad valorem taxes and personal property taxes based on residence or domicile of the taxpayer in this state. Since sales tax is not based upon residence or domicile within a state, but upon transfer of title of property for a consideration, the sale of the automobile is subject to sales tax.

Also, the purchaser's claim that his purchase of the automobile is not subject to tax under Articles 47 and 59 of an agreement between the United States and Spain signed on December, 1988 is not valid. This agreement provides an exemption from Spain's value added tax and import duty taxes for members of the force or civilian components while serving in Spain, and these Articles are inapplicable to a transfer of title to an automobile in California. 9/30/94.