Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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V

585.0000 VEHICLES, VESSELS, AND AIRCRAFT—Regulation 1610

Annotation 585.0008

(a) GENERALLY

585.0008 Exchange of Property—Sales/Purchase Price. A person trades a five acre piece of California land worth approximately $8,000 for a Toyota pick-up truck. The truck is worth $7,000 average retail.

When there is an exchange of property, the measure of "consideration" for the "sale" or "purchase" is the property received (for sales tax) or the property paid (for use tax) at the time of sale and delivery of the taxable property sold (sales tax) or purchased (use tax).

If the truck is purchased from a licensed automobile dealer, the sales tax is the applicable tax and the measure of the tax is based on the property received by the dealer (the five acre piece of land worth $8,000).

On the other hand, if the truck is purchased from a private party, the use tax is the applicable tax. The measure of tax is based upon the property the purchaser paid for the truck (the five acre piece of land worth $8,000) and the payment of the use tax is made by the purchaser when he/she registers the truck with the Department of Motor Vehicles. 2/21/86.