Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 465.0062


(1) Generally

465.0062 Refund of Sales Tax Paid on Exempt Transaction. A licensed auto dealer wants to export a new auto overseas which it will purchase from a new car franchised dealer. The franchised dealer is required by the factory to collect amounts as sales tax and license fees on all sales of vehicles at wholesale or retail. The vehicle will be picked up at the franchise dealer's location by a PUC licensed trucking company and taken directly to the port and loaded on a boat.

An amount paid to the retailer by the purchaser itemized as sales tax is not imposed by the state on the purchaser. It is a tax imposed on the retailer. The purchaser has no standing to file a claim for the refund with the Board for such amounts since the purchaser made no payments of sales tax to the Board. Instead, the retailer is the only person who may file a claim for refund of sales taxes which the retailer believes it overpaid. When a retailer has collected reimbursement for sales tax and the retailer claims it overpaid to the Board, the Board will not grant the refund unless the retailer refunds any such reimbursement to the purchaser. (Regulation 1700(b)(2).) In this case, only the new car franchise dealer may make a claim for refund of sales taxes to the Board. 5/10/95.