Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620
(a) IN GENERAL—SHIPMENTS INTO CALIFORNIA FROM POINTS OUTSIDE STATE
325.0080.400 Motorhome and Auto Tow Tractors. A couple, who are California residents, purchases a motorhome and auto tow trailer in Oregon. They drive both units to California to clean and pack the vehicle. Within one or two weeks, they drive the units outside the state to visit relatives during the following five months. If the motorhome was driven empty into California for cleaning, packing, and outfitting, its first functional use was in California and its use is subject to use tax. However, if the motorhome was used to tow the auto tow-trailer to California, then the first use was outside of California. Under these circumstances, assuming the motorhome is used outside of California for five of the following six months, its use would not be subject to California use tax.
Likewise, the auto tow trailer would be subject to tax if it did not carry a car back to California since the first functional use would be in California. However, if it did carry an auto then its use likewise would not be subject to tax if its use was outside California for five of the six months after its first entry into California.
The fact that the auto is registered in California for insurance purposes would not affect the analysis. 4/29/97.