Vehicle Industry Registration Procedures Manual

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Section 5 of 38

Chapter 4: Use Tax

Chapter 4 Use Tax

4.000 Introduction ( VC §§4000(d), 4300.5, 5600, 9928, and 38211 and CR&TC §§6275, 6291, and 6294)

Use tax is collected on original registration and transfer applications for vehicles/vessels purchased from someone other than a licensed California dealer, manufacturer, or dismantler unless the transaction is specifically exempted from payment of use tax or the California Department of Tax and Fee Administration (CDTFA) issues the applicant Certificate of Use Tax Clearance (CDTFA-111) form or Certificate of Vessel Use Tax Clearance (CDTFA-111B) form (CR&TC §6422.1).

Use tax rates vary by county and city. The use tax rate is the same rate as for sales tax and is determined by the address where the vehicle is registered or the vessel is moored.

Special District taxes are taxes that apply to the registered owner’s county and/or city where they reside or the situs county and city. Refer to Appendix 1A for use tax rates.