Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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580.0000 VEHICLES

Annotation 580.0186


580.0186 Delivery of Vehicles Out of State Followed by Return in Interstate Commerce Use. A retailer delivers vehicles to a California resident at a point outside of the state. To avoid liability for collecting use tax, the retailer must obtain a statement from the buyer that the vehicles will not be used in California or a statement that any use of the vehicles in California will be in interstate commerce. Failure to obtain and retain a statement puts the burden of proof on the retailer to show that the property was not purchased for use in California or that use in California was a use "continuously in interstate commerce." To determine whether or not the vehicles were purchased for use in California, the tests prescribed in Regulation 1620 are employed, i.e., the use during the first six months after the vehicles re-enter California is examined. 3/19/73. (Am. 2003–3).

(Note: Regulation 1620(b)(4)(B)1. has been amended regarding the application of use tax to vehicles (eff. 2/23/00), vessels (eff. 2/7/02), and aircraft (eff. 12/17/00) whose travel in interstate or foreign commerce is commercial travel.)