California CDTFA Publishes Guidance on Use Tax Exemptions for Vehicle Transfers

The California Department of Tax and Fee Administration (CDTFA) published guidance on vehicle and vessel transfers that are exempt from the state use tax. The publication details various scenarios where use tax may not apply, including gifts, purchases from family members, involuntary transfers through court orders or inheritance, out-of-state purchases not intended for use in California, purchases by Native Americans for use on reservations, and certain transfers to corporations, limited liability companies, partnerships, or revocable living trusts. It also explains the process for obtaining a use tax clearance certificate (CDTFA-111 or CDTFA-111-B) when an exemption applies, which allows registration with ...