California CDTFA Issues Publication on Use Tax Exemptions for Certain Vehicle, Vessel Transfers

The California Department of Tax and Fee Administration (CDTFA) issued a publication providing guidance on exemptions from California use tax for certain vehicle and vessel transfers. The CDTFA explains when use tax does not apply for vehicles/vessels received either as gifts, when purchased from family members, when transferred due to court orders or repossessions, when purchased out-of-state, or when transferred to corporations/trusts. The CDTFA also outlines the documentation required to claim exemptions and procedures for obtaining tax clearances when registering with the Department of Motor Vehicles. Effective dates vary based on the specific exemption criteria. [Cal. Dep’t of Tax & ...