Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Transactions and Use Tax Annotations

800.0000 APPLICATION OF TRANSACTIONS (SALES) TAX AND USE TAX—Regulation 1823

Annotation 800.0001

800.0001 Applicable Rate—Terminated District Tax. A dealer sold a vehicle for European delivery in February 1995 to a California customer from its dealership in California. The vehicle was picked up by the customer in Germany on March 14,1995, used in Germany for a short time, and then it was shipped to the dealership in California. The customer took possession of the vehicle in California on April 21,1995.

The district tax in effect on March 14,1995, terminated prior to the April 21, 1995, arrival of the vehicle in California. While the applicable rate generally is the rate in effect on the date of purchase, there can be no accrual of tax liability until the property is first stored or used in this state. The retailer should collect district use tax at the rate in effect when the vehicle is first used in the district, that is, upon its entry to the district. 8/14/95.