Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
585.0000 VEHICLES, VESSELS, AND AIRCRAFT—Regulation 1610
585.0022 Family Exemption—Sale by Dealer to Family Member Is Taxable. Under Revenue and Taxation Code section 6275, the sale of a motor vehicle by an individual who holds a DMV dealer's license to that individual's child is not exempt from sales and use tax, regardless of whether the vehicle comes from the inventory of the dealer. For example, if a Toyota dealer sells a Volvo to his or her child, that sale is not exempt because Toyotas and Volvos are the same type of property (i.e., vehicles). However, if the Toyota dealer sells an aircraft or vessel to his or her child, that sale would be exempt because a vehicle is not the same type of property as a vessel or aircraft. Similarly, a vessel dealer's sale of a motor vehicle or of an aircraft to his or her child is exempt, but the sale of a vessel to his or her child is not exempt. 11/28/01.