1. (a) Definitions.

   1. (1) Dealer. “Dealer” means a person that is engaged wholly or in part in the business of selling or leasing vehicles, whether or not such vehicles are owned by the person.
   2. (2) Department. “Department” means the California Department of Tax and Fee Administration.
   3. (3) Remanufacturer and Remanufactured Vehicles. “Remanufacturer” means a person that is licensed as a remanufacturer as defined in Vehicle Code section 507.8 by the Department of Motor Vehicles or licensed as a remanufacturer by the appropriate governmental agency in another state. “Remanufactured vehicle” has the same meaning as set forth in Vehicle Code section 507.5. A vehicle constructed in another state will qualify as a remanufactured vehicle if it was constructed by a person licensed as a remanufacturer by the appropriate governmental agency in that state and the vehicle meets that state's requirements to be a remanufactured vehicle. A used vehicle as defined in Vehicle Code section 665 does not qualify as a remanufactured vehicle unless the vehicle otherwise qualifies as a remanufactured vehicle pursuant to applicable state laws.
   4. (4) Vehicle. “Vehicle” means a new or remanufactured truck, truck tractor, semitrailer, or trailer with an unladen weight of 6,000 pounds or more; or a new or remanufactured trailer coach, or auxiliary dolly. A vehicle is mobile transportation equipment subject to the provisions of Regulation 1661, Leases of Mobile Transportation Equipment, unless excluded by Regulation 1661.

   The following terms have the following meanings for purposes of this regulation:

2. (b) Application of Tax.

   1. (1) Purchases the vehicle from a dealer located outside this state.
   2. (2) Removes the vehicle from this state within 30 days after the date of delivery.
   3. (3) Provides a properly completed affidavit, which satisfies the requirements of subdivisions (c) and (d), to the manufacturer or remanufacturer that delivered the vehicle that is accepted by such person in good faith. In the absence of evidence to the contrary, it is presumed that a manufacturer or remanufacturer accepted an affidavit in good faith if the affidavit contains all the elements required by subdivisions (c) and (d) and otherwise appears to be valid on its face.
   4. (4) Provides written evidence of the out-of-state registration of the vehicle (state of registration, license plate number and vehicle identification number (VIN) or serial number) to the manufacturer or remanufacturer that delivered the vehicle.

   In general, tax applies to the sale or storage, use, or other consumption of vehicles in this state. However, under the Revenue and Taxation Code section 6388 exemption, tax does not apply to the sale or storage, use, or other consumption of a vehicle delivered in this state by the vehicle manufacturer or remanufacturer to a purchaser that is not a resident of California for use out-of-state where the purchaser:

3. (c) Affidavit.

   1. (1) An affidavit is properly completed if the purchaser signs and dates the affidavit, provides it to the manufacturer or remanufacturer that delivered the vehicle to the purchaser after the vehicle is removed from this state, and it includes:

      1. (A) A description of the vehicle, including year, make and model, VIN or serial number, and unladen weight;
      2. (B) The name, telephone number, and out-of-state address of the purchaser;
      3. (C) The name of the dealer and the address of the dealer's out-of-state location from which the vehicle was purchased;
      4. (D) The name and address of the manufacturer or remanufacturer that delivered the vehicle to the purchaser;
      5. (E) The date of delivery and date of removal of the vehicle from this state; and
      6. (F) A statement that the purchaser is not a resident of California, the vehicle was purchased from the dealer's specified out-of-state location for use outside this state, and was removed from this state within 30 days after the date of delivery of the vehicle to the purchaser.
   2. (2) A purchaser may use a form provided by the Department for use as an affidavit for the Revenue and Taxation Code section 6388 exemption. A properly completed form provided by the Department for use as an affidavit for the Revenue and Taxation Code section 6388 exemption will satisfy the requirements of subdivisions (c)(1) and (d).
   3. (3) For transactions that include the purchase of more than one vehicle from a dealer's specified out-of-state location, the purchaser need not provide a separate affidavit for each vehicle, but may instead append a list of the vehicles included in the transaction to one affidavit. The list must include a description of each vehicle, as required by subdivision (c)(1)(A), and the date each vehicle was delivered and the date each vehicle was removed from this state. The purchaser must also provide evidence of out-of-state registration for each vehicle, as required by subdivision (b)(4).
4. (d) Lessors. The sale of a vehicle to a lessor qualifies for the Revenue and Taxation Code section 6388 exemption provided the sale and subsequent use of the vehicle meets the requirements in subdivision (b). However, a lessor must provide the name and address of the lessee on the affidavit required by subdivision (b)(3) if the documentation provided pursuant to subdivision (b)(4) shows that the vehicle is registered in the lessee's name.
5. (e) Documentation to be Maintained by Purchasers. Purchasers of vehicles shall maintain records documenting that a vehicle qualifying for the Revenue and Taxation Code section 6388 exemption was removed from this state within 30 days after the date of delivery and was used outside the state. A purchaser must provide the records to the Department upon request.

Note: Authority cited: Sections 15570.22 and 15570.24, Government Code; and Sections 20 and 7051, Revenue and Taxation Code. Reference: Sections 6388, 6388.3, 7053 and 7054, Revenue and Taxation Code.

History

1. New section and appendix filed 9-16-2003; operative 10-16-2003 (Register 2003, No. 38).

2. Amendment of section heading, section and Note filed 5-14-2026; operative 7-1-2026 (Register 2026, No. 20).