Cal. Code Regs. tit. 25 § 5668

Current through Register 2024 Notice Reg. No. 36, September 6, 2024

Section 5668 - How to Establish an Exemption from Use Tax

(a) To obtain an exemption from payment of use tax, an application must include either:

(1) Form BT 111, Certificate of Use Tax Exemption, or such other form as may be issued by the State Board of Equalization, when:

(A) the use tax has been paid directly to the board, or

(B) the board has determined that no use tax is due.

(2) a statement signed under penalty of perjury by the licensed California manufacturer, out-of-state manufacturer, or out-of-state dealer who sold the unit, which includes

(A) that the selling entity collected California Use Tax; and

(B) the resale license number under which the use tax was submitted to the Board.

(3) a purchase document which shows that the unit was purchased in another state more than 90 days prior to the date the unit was brought into California.

(4) a statement signed under penalty of perjury by the new registered owner, which includes:

(A) the unit identifying information;

(B) that the unit was obtained under one of the following circumstances;

1. as a gift;

2. from a parent, grandparent, grandchild, child, or spouse and the name of the parent, grandparent, grandchild, child or spouse being added to or deleted from the title record of the unit;

3. from a brother or a sister; and that both the buyer and seller are minors related by blood or adoption

4. as a result of an inheritance;

5. pursuant to a court order, provided that the unit is being registered in the name of the party named in the court order;

6. a transfer to a revocable trust in which all of the following apply:

A. the seller has an unrestricted power to revoke the trust;

B. the sale does not result in any change in the beneficial ownership of the property;

C. the trust provides that upon revocation of the trust the property will revert wholly to the seller, and;

D. the only consideration for the sale is the assumption by the trust of an existing loan for which the tangible personal property being transferred is the sole collateral for the assumed loan.

(C) if the unit was purchased from a relative, that the seller is not engaged in the business of selling the type of property for which the exemption is claimed.

Cal. Code Regs. Tit. 25, § 5668

1. New section filed 12-31-97; operative 1-1-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 1).

Note: Authority cited: Sections 18015 and 18075, Health and Safety Code. Reference: Section 18123, Health and Safety Code; and Sections 6285 and 6292, Revenue and Taxation Code.

1. New section filed 12-31-97; operative 1-1-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 1).