Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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580.0000 VEHICLES

Annotation 580.0075


580.0075 Collection of Use Tax by Department of Motor Vehicles (DMV). Use Tax is not collected by the Department of Motor Vehicles on "transfer only" transactions. The "transfer only" transactions arise in two factual situations:

(1) A vehicle, such as a forklift, is titled with DMV but not registered for operation, because the vehicle is operated only off the highway such as in a warehouse or on a farm.

(2) The owner of a vehicle takes the vehicle out of state for operation and registers the vehicle out of state but retains title in California.

When a person sells a vehicle under either of the above situations, the sale is of a vehicle which is not "required to be registered." Accordingly, section 6292 is not applicable and the DMV should not collect the use tax. 2/22/89.