Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
585.0000 VEHICLES, VESSELS, AND AIRCRAFT—Regulation 1610
585.0005 DMV Report of Sale Not Required. A lessor of automobiles sells the leased vehicles to the lessees. The Department of Motor Vehicles does not require the lessor to hold a dealer's license for this purpose. The lessor later obtains a dealer's license for the purpose of selling formerly leased cars to the public. The lessor must report sales to the public to DMV. Sales tax is due from the lessor on these sales.
DMV does not require the lessor to report sales to the lessees even though it now holds a dealer's license. Accordingly, the tax due on these automobiles is the use tax which the lessee/buyer must pay to DMV at the time of changing registration. 1/19/72.