Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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585.0000 VEHICLES, VESSELS, AND AIRCRAFT—Regulation 1610

Annotation 585.0100


585.0100 Measure of Tax. The action of the Department of Motor Vehicles in requiring payment of use tax measured by the fair market value of purchased used vehicles is not conclusive of the measure of tax so as to prevent assessment of a deficiency measured by the difference between the fair market value and an actual higher sales price. The term "sales price," as used in law section 6276, is defined in section 6011 as "the total amount for which tangible personal property is sold." The section 6276 presumption that the fair market price equals the sales price is expressly subject to rebuttal, and that right of rebuttal is available to the state as well as to the taxpayer. The provision of Vehicle Code section 4750(d) that payment of tax according to its terms will constitute "full compliance" with the Sales and Use Tax Law relates only to the section 4750(d) provision for "rounding off" dollar fractions, not to DMV determination of fair market value. 5/21/69.