{"id":13567,"date":"2020-04-15T15:23:12","date_gmt":"2020-04-15T22:23:12","guid":{"rendered":"https:\/\/www.dmv.ca.gov\/portal\/handbook\/vehicle-industry-registration-procedures-manual-2\/use-tax\/transactions-subject-to-use-tax\/"},"modified":"2024-05-01T15:51:10","modified_gmt":"2024-05-01T22:51:10","slug":"transactions-subject-to-use-tax","status":"publish","type":"dmv_handbook","link":"https:\/\/www.dmv.ca.gov\/portal\/es\/handbook\/vehicle-industry-registration-procedures-manual-2\/use-tax\/transactions-subject-to-use-tax\/","title":{"rendered":"4.040 Transactions Subject to Use Tax (CR&TC \u00a76001 and VC \u00a7\u00a74300.5, 4750.5, 9858.5, and 9928)"},"content":{"rendered":"

Use tax is due<\/strong> on all original registration and\/or transfer applications for vehicles\/vessels purchased from someone other than a licensed California dealer, manufacturer, or dismantler, unless<\/strong> the:<\/p>\n\n\n\n

\u2022 Transaction is specifically exempted from payment of use tax.<\/p>\n\n\n\n

\u2022 CDTFA issues the applicant a CDTFA 111 or a CDTFA 111B form (CR&TC \u00a76422.1).<\/p>\n\n\n\n

DMV must withhold registration and\/or transfer if the applicant does not pay the required use tax or<\/strong> submits a CDTFA 111 or CDTFA 111B. <\/p>\n\n\n\n

Applicant Claims Use Tax is Not Due\u2014<\/strong>Follow the procedures below when it appears use tax is due but the applicant claims use tax is not<\/strong> due:<\/p>\n\n\n\n

<\/div>\n\n\n
If the Applicant<\/th>Then<\/th><\/tr><\/thead>
If the Applicant<\/span>Requests the application processed immediately<\/td>Then<\/span>\u2022 Collect the use tax and any other fees due.
\u2022 Have the applicant complete a REG 256, explaining why a refund is requested.

Refer to the Refund of Use Tax section in this chapter.<\/td><\/tr>
If the Applicant<\/span>Does not<\/strong> want to pay the use tax due<\/td>Then<\/span>\u2022 Collect any other fees due on a report of deposit of fees (RDF) to avoid penalties.
\u2022 Advise the applicant to contact CDTFA for a CDTFA 111 or CDTFA 111B.<\/td><\/tr>
If the Applicant<\/span>Does not<\/strong>\u00a0want to pay any fees<\/td>Then<\/span>\u2022 Return the application to the applicant.
\u2022 Advise them of the last penalty-free date to pay the fees due.<\/td><\/tr>
If the Applicant<\/span>Requires further information<\/td>Then<\/span>Refer them to the CDTFA Taxpayer Information Section at 1-800-400-7115.<\/td><\/tr>
If the Applicant<\/span>Resides in an unincorporated area and is exempt from additional city use tax<\/td>Then<\/span>Accept a:
\u2022 REG 256 with their residence address.
\u2022 Letter on city letterhead stating city use tax is not due.
\u2022 CDTFA 111or CDTFA 111B.<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/body>\n\n\n
<\/div>\n\n\n\n

Exempt and Government Exempt Vehicles\/Vessels<\/strong>\u2014Use tax is:<\/p>\n\n\n\n