Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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425.0000 PRESCRIPTION MEDICINES—Regulation 1591

Annotation 425.1117


425.1117 Modification of Paratransit Vehicles. A company manufactures a paratransit vehicle which is designed totally for use by handicapped persons. It wanted to know whether available options such as air conditioning, front lighted signs, special paints, safety kits and flares and transmission coolers are exempt from tax when built in conjunction with the paratransit vehicle.

The term "physically handicapped" persons as used in section 6369.4 includes only those disabled persons described in California Vehicle Code section 22511.5 as qualified for special parking privileges. Tax does not apply to the sale of items and materials which are used to modify vehicles in those instances where the modifications to the vehicles are necessary in order to transport such physically handicapped persons. This exemption includes vehicles which are owned and operated by physically handicapped persons as well as vehicles which are used in the public or private transport of physically handicapped persons. If modifications made to a vehicle are specifically necessary to enable the vehicle to be used to transport physically handicapped persons, they are exempt from tax under section 6369.4. In some instances, items such as air conditioning, insulation, and citizens band radio might be necessary to transport persons with certain types of disabilities while in other cases they would not be considered necessary.

Modifications involving roof extension, modified door, door operator, supplemental steps, floor lights and wires, seating, wheel chair lifts and controls and wheelchair restraints would appear to qualify. 3/11/81.