Chapter 4: Use Tax
4.055 Vehicles or Vessels Purchased Outside of the United States
California use tax is due on vehicles/vessels purchased and delivered outside the United States for use in California subject to the 12-month or 90-day rule, as appropriate. Refer to the Transactions Subject to Use Tax section in this chapter.
The following must be submitted:
- A REG 256 completed by the applicant for use tax credit.
- The balance of use tax due after the use tax credit, if any, has been applied.
The following procedures must be followed:
- Determine if the transaction is subject to use tax by verifying the:
- Owner’s date of actual physical possession out of state.
- Date of delivery to a shipping agent or placement in storage for shipment to California.
- Collect the balance of use tax after the use tax credit, if any, has been applied.
- Refer applicants who object to pay the use tax due to CDTFA for review.
- Applicants may also pay the use tax due and request a refund from CDTFA.
- Do not make exceptions to these procedures.