Vehicle Industry Registration Procedures Manual

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Section 5 of 38

Chapter 4: Use Tax

4.025 Partial Use Tax Exemption

Qualified sales and purchases of specified vehicles, including certain leases of new or used equipment, may be eligible for partial use tax exemption. The partial use tax exemption applies to machinery and parts designed primarily for off-highway use.

Example: All terrain vehicles (ATVs), farm equipment and machinery, agricultural equipment, and special equipment (SE) when used primarily in commercial agricultural and harvesting (50 percent or more of the time), and registered on September 1, 2001, or after.

DMV will not determine eligibility for partial use tax exemption. Refer customers to the CDTFA for a determination of partial use tax eligibility. The applicant may pay DMV the use tax and apply to CDTFA for a refund or provide DMV with a CDTFA 111.