Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2012
 

Revenue and Taxation Code

Other Taxes

Part 5. Vehicle License Fee

Chapter 2. Imposition of Fee

Article 1. Computation of Fee

Section 10753

10753. Basis of valuation. [Repealed by Stats. 2000, Ch. 596 (AB 2909) in effect January 1, 2001.]

10753. Basis of valuation. (a) Upon the first sale of a new vehicle to a consumer and upon each sale of a used vehicle to a consumer, the department shall determine the market value of the vehicle on the basis of the cost price to the purchaser as evidenced by a certificate of cost, but not including California sales or use tax or any local sales, transactions, use, or other local tax. "Cost price" includes the value of any modifications made by the seller.

(b) Notwithstanding subdivision (a), the department shall not redetermine the market value of used vehicles, or modify the vehicle license fee classification of used vehicles determined pursuant to Section 10753.2, when the seller is the parent, grandparent, child, grandchild, or spouse of the purchaser, and the seller is not engaged in the business of selling vehicles subject to registration under the Vehicle Code, or when a lessor, as defined in Section 372 of the Vehicle Code, transfers title and registration of a vehicle to the lessee at the expiration or termination of a lease.

(c) (1) In the event that any commercial vehicle is modified or additions are made to the chassis or body at a cost of two thousand dollars ($2,000) or more, but not including any change of engine of the same type or any cost of repairs to a commercial vehicle, the owner of the commercial vehicle shall report any modification or addition to the department and the department shall classify or reclassify the commercial vehicle in its proper class as provided in Section 10753.2, taking into consideration the increase in the market value of the commercial vehicle due to those modifications or additions, and any reclassification resulting in increase in market value shall be based on the cost to the consumer of those modifications or additions. In the event any vehicle is modified or altered resulting in a decrease in the market value thereof of two hundred dollars ($200) or more as reported to and determined by the department, the department shall classify or reclassify the vehicle in its proper class as provided in Section 10753.2.

(2) Paragraph (1) does not apply under any of the following conditions:

(A) When the cost of any modification or addition to the chassis or body of a commercial vehicle is less than two thousand dollars ($2,000).

(B) When the cost is for modifications or additions necessary to incorporate a system approved by the State Air Resources Board as meeting the emission standards set forth in subdivisions (a) and (b) of former Section 39102 and former Section 39102.5 of the Health and Safety Code as they read on December 31, 1975.

(C) When the cost is for modifications that are necessary to enable a disabled person to use or operate the vehicle.

(3) For purposes of this subdivision, "commercial vehicle" means a "commercial vehicle," as defined in Section 260 of the Vehicle Code, that is regulated by the Department of the California Highway Patrol pursuant to Sections 2813 and 34500 of the Vehicle Code.

(d) This section also applies to a system as specified in subdivision (c) that is approved by the State Air Resources Board as meeting the emission standards specified in subdivisions (a) and (b) of former Section 39102 and former Section 39102.5 of the Health and Safety Code as they read on December 31, 1975, for vehicles 6,001 pounds or less, manufacturer's gross vehicle weight, controlled to meet exhaust emission standards when sold new, when that system is used in any vehicle over 6,001 pounds or any vehicle 6,001 pounds or less not controlled to meet exhaust emission standards.

(e) The temporary attachment of any camper, as defined in Section 243 of the Vehicle Code, to a vehicle is not a modification or addition for the purposes of subdivision (c).

(f) The attachment to a vehicle of radiotelephone equipment furnished by a telephone corporation, as defined in Section 234 of the Public Utilities Code, is not a modification or addition for the purpose of subdivision (c), when that equipment is not owned by the owner of the vehicle.

(g) For purposes of this section, "vehicle" does not include trailers or semitrailers.

History.—Stats. 1948, p. 129, operative January 1, 1949, substituted present section for provision that department should compile and publish a list showing market value of vehicles. Stats. 1963, p. 1696, in effect September 20, 1963, added subdivision (e). Stats. 1965, p. 1204, in effect September 17, 1965, added subdivision (f). Stats. 1967, p. 1647, in effect November 8, 1967, amended subdivisions (a), (b), (c), and added subdivision (g), substituting the present basis for valuation for the former system under which all vehicles were valued on the basis of "delivered prices" and "cost price" was used only for certain commercial vehicles. Stats. 1969, p. 132, effective November 10, 1969, substituted "as" for "is" after "and defined" in subdivision (a); and substituted "Section 39129" for "Section 24390" in subdivision (b). Stats. 1970, p. 2992, in effect November 23, 1970, added the language following "($200)" in the second paragraph of subdivision (d). Stats. 1971, p. 2253, effective October 19, 1971, inserted subdivision (e) and relettered subdivisions (e) to (g) as subdivisions (f) to (h). Stats. 1975, Ch. 957, p. 2228, in effect January 1, 1976 substituted "former Section 39102 and former Section 39102.5 of the Health and Safety Code as they read on December 31, 1975" for "Section 39102 and Section 39102.5 of the Health and Safety Code" in the second paragraph of subdivision (d) and in subdivision (e); deleted "California" after "Section 234 of the" in subdivision (g); and substituted "cost of motor vehicle pollution" for "emission", "Part 5 (commencing with Section 43000) of Division 26" for "Section 39129", and "Automobile Information Disclosure Act (15 U.S.C., Secs. 1231 to 1233, inclusive)" for "Federal Automobile Information Disclosure Act of 1958" in subdivision (h). Stats. 1977, Ch. 373, in effect August 24, 1977, added the subsection numbers and added subsection (3) in the second paragraph of subdivision (d). Stats. 1983, Ch. 323, in effect July 21, 1983, operative October 1, 1983, substituted subdivision (a) for former subdivisions (a), (b), and (c); relettered former subdivisions (d), (e), (f), and (g) as (b), (c), (d), and (e), respectively; substituted "(b)" for "(d)" after "subdivision" in subdivisions (c), (d), and (e); and deleted former subdivision (h). Stats. 1991, Ch. 87, in effect June 30, 1991, operative August 1, 1991, substituted "upon the first sale . . . to a consumer" for "on all vehicles" after "part" in subdivision (a); added new subdivision (b); relettered former subdivisions (b), (c), (d), and (e) as subdivisions (c), (d), (e), and (f) respectively; added "10753.1 or" after "Section" in the first and second sentences of the first paragraph of the subdivision (c); and substituted "(c)" for "(b)" after "subdivision" in subdivisions (e) and (f). Stats. 1996, Ch. 228, in effect July 22, 1996, substituted "Upon" for "For the purposes of this part, upon" , substituted "sales, transactions, use, or" for "sales or" after "or any local" in the first sentence, and added the second sentence, commencing with " "Cost price" shall" in subdivision (a); numbered the first paragraph as paragraph (1), substituted "commercial vehicle" for "vehicle" six times, substituted "two thousand dollars ($2,000)" for "two hundred dollars ($200)" after "a cost of", substituted "any modification" for "any such modification" after "vehicle shall report", and substituted "those" for "such" twice in paragraph (1), numbered the second paragraph as paragraph (2), substituted "Paragraph (1) shall not apply to any of the following: (A) When" for "The foregoing provisions of this subdivision shall not apply in the event: (1)", substituted "commercial vehicle is less than two thousand dollars ($2,000). (B) When" for "vehicle is less than two hundred dollars ($200), (2)" after "body of a", substituted " 1975. (C) When" for "1975, or (3)" after "on December 31," substituted "that" for "which" after "is for modifications", and added paragraph (3) to subdivision (c); added subdivision (g); and substituted "the" or "those" for "such" throughout the text. Stats. 1997, Ch. 17 (SB 947), in effect January 1, 1998, substituted "includes" for "shall include" after " "Cost price" " in the second sentence of subdivision (a); substituted "addition" for "additions" after "any modification or" in paragraph (1) and subparagraph (A) of paragraph (2), substituted "does" for "shall" after "Paragraph (1), substituted "under" for "to" after "apply", and added "conditions" after "following" in the first sentence of paragraph (2), substituted " "commercial vehicle," " for "vehicle" in paragraph (3) of subdivision (c); and substituted "also applies" for "is also applicable" after "This section", added "as" after "a system", added "that is" after "subdivision (c)", and substituted "that" for "such a" after "when" in the first sentence of subdivision (d). Stats. 1999, Ch. 724 (AB 1650), in effect January 1, 2000, substituted "2001" for "2000" after "January 1", and added ", unless a later . . . that date" after "date is repealed" in subdivision (g). Stats. 2000, Ch. 596 (AB 2909), in effect January 1, 2001, added "California" after "Department of the" in the first sentence of paragraph (3) of subdivision (c), deleted former subdivision (g) which provided "This section shall remain in effect only until January 1, 2000, and as of that date is repealed.", and added subdivision (g). Stats. 2003, Ch. 594 (SB 315), in effect January 1, 2004, substituted "Section 10753.2" for "Section 10753.1 or 10753.2" after "determined pursuant to" in the first sentence of subdivision (b); and added "that" after "In the event", substituted "Section 10753.2" for "Section 10753.1 or 10753.2" after "as provided in", and added "an" after "consumer resulting in" in the first sentence, and substituted "Section 10753.2" for "Section 10753.1 or 10753.2" after "as provided in" in the second sentence of paragraph (1) of subdivision (c).

Note.—Sections 152–154 of Stats. 1983, Ch. 323, provided no payment by state to local agencies or school districts because of this act. Sec. 155 thereof provided the provisions of this act shall remain in effect unless and until they are amended or repealed by a later enacted act. Sec. 156 thereof provided that the provisions of the act are severable.

Note.—Stats. 1991, Ch. 87, clarified that the provisions of Section 10753 shall become operative August 1, 1991.