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New Dealers must collect Sales Tax whenever they sell a vehicle to a Consumer and remit this to the DMV (not the CDTFA)CorrectIncorrect
Dealers must collect Sales Tax whenever you sell a vehicle to a Consumer and remit this to the DMV. Effective January 1, 2021, dealers no longer pay vehicle sales tax to the CDTFA.
What items are taxable?CorrectIncorrect
Taxable portions of the Conditional Sales Contract include:
- The selling price of the vehicle
- Accessories installed, not included in vehicle price (parts and labor)
- The labor portion of the Smog Fee
- Document Preparation Service Fee
Non-taxable items of the Conditional Sales Contract include:
- DMV fees (license & registration)
- California State Smog Certificate fee
Sales to Out-of-State Purchasers are generally DMV fees and Sales Tax exempt if there is proof the delivery did occur outside of California. If the Buyer comes to California to pick up their vehicle, you must collect Sales Tax from the Buyer.CorrectIncorrect