Vehicle Industry Registration Procedures Manual

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Section 5 of 38

Chapter 4: Use Tax

4.045 Use Tax Basis

Chapter 4 Use Tax

4.045 Use Tax Basis

Use the following information to determine the use tax basis.

Trailer Coaches and Vessels—Use tax is based on the situs county and city or, if there is no situs, based on the registered owner’s residence county and city.

Military Addresses (APO or FPO)—An applicant with a military address must complete a REG 256 giving their residence county and city in order to determine the appropriate use tax rate.

An applicant who protests the application of use tax on this basis must file a claim for refund with CDTFA. When this occurs:

  • The applicant must complete a REG 256 requesting a refund from CDTFA. Attach the REG 256 to the application as the last document.
  • Collect the use tax due.

Vehicles—Use tax is based on the registered owner’s residence county and city, unless an allocation county is shown.

An applicant may present a use tax exemption claim to CDTFA prior to paying use tax to DMV. If the claim is approved, CDTFA gives the applicant a CDTFA 111 to submit with their registration application. Use tax is not collected in this case.