Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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U

570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY

Annotation 570.0175

(a) IN GENERAL

570.0175 Interstate Use of Vehicle. A vehicle is not subject to California use tax when it is purchased outside of California, is first functionally used outside of California in interstate commerce, enters California in course of such use, and is thereafter continuously used in interstate commerce both within and without California. When such vehicle operates between points within this state, the character of the cargo determines whether the vehicle carrying it during a six month test period is regarded as used in interstate commerce. For example, if every load includes an interstate portion of its cargo, the vehicle qualifies as being used in interstate commerce, provided the vehicle is not used exclusively in California (i.e., it must be used within and without this state). However, if there is a wholly intrastate event or haul during the six month test period, use of the vehicle other than interstate use has occurred. If so, the vehicle has not been used continuously in interstate commerce. Thus, the use tax exemption for use in interstate commerce would not apply. 8/2/95. (Am. 2000–1).