4.005 California Department of Tax and Fee Administration Review Request (CR&TC §6422.1)

Refer applicants who do not want to pay California use tax to the CDTFA to determine if use tax is due. A list of CDTFA offices is available at cdtfa.ca.gov.

Note The CDTFA District Office does not issue CDTFA 111 or CDTFA 111B certificates. Provide customers in this area with the following CDTFA resources:

• Taxpayer Information Section: 1-800-400-7115.

• Consumer Use Tax Section in Sacramento: (916) 445-9524.

• Vehicles and Vessels: Use Tax (PUB 52) brochure available at: cdtfa.ca.gov/formspubs/pubs.htm

If applicable, the CDTFA will issue the CDTFA 111/ CDTFA 111B or a Certificate of Excise Tax Clearance (CDTFA 1138) form for commercial vehicles subject to fuel tax to present to the Department of Motor Vehicles (DMV) with their registration/transfer application.

Chapter 4 Use Tax

4.000 Introduction ( VC §§4000(d), 4300.5, 5600, 9928, and 38211 and CR&TC §§6275, 6291, and 6294)

Use tax is collected on original registration and transfer applications for vehicles/vessels purchased from someone other than a licensed California dealer, manufacturer, or dismantler unless the transaction is specifically exempted from payment of use tax or the California Department of Tax and Fee Administration (CDTFA) issues the applicant Certificate of Use Tax Clearance (CDTFA-111) form or Certificate of Vessel Use Tax Clearance (CDTFA-111B) form (CR&TC §6422.1).

Use tax rates vary by county and city. The use tax rate is the same rate as for sales tax and is determined by the address where the vehicle is registered or the vessel is moored.

Special District taxes are taxes that apply to the registered owner’s county and/or city where they reside or the situs county and city. Refer to Appendix 1A for use tax rates.

Chapter 4: Use Tax

4.000 Introduction

4.005 California Department of Tax and Fee Administration Review Request

4.010 Calculating Use Tax Amount

4.015 Credit for Tax Paid to Another State

4.020 Definitions

4.025 Partial Use Tax Exemption

4.030 Refund of Use Tax

4.035 Transactions Not Subject to Use Tax

4.040 Transactions Subject to Use Tax

4.045 Use Tax Basis

4.050 Use Tax Penalties

4.055 Vehicles or Vessels Purchased Outside of the United States

3.085 Weight Fees

Weight fees are collected on commercial vehicles in addition to the other fees due for registration. See Appendix 1F.

• Weight fees for vehicles operated under 10,001 pounds gross vehicle weight (GVW) and for pickups are determined by the number of axles and unladen weight.
• Weight fees for vehicles operated over 10,001 pounds GVW are determined by the declared GVW or combined GVW (CGW) as shown on the Declaration of Gross Vehicle Weight (GVW)/Combined Gross Vehicle Weight (CGW) (REG 4008) (PDF) form.
• Weight fees are subject to penalties based on the date fees are paid.

Weight Fee Exemptions

The following commercially-designed vehicles are exempt from weight fees:

• Three-axle motor vehicles weighing less than 2,000 pounds unladen (VC §9400(c)).
• Agricultural water-well boring rigs (VC §9405).
• Vehicles operated in accordance with a permit issued by DMV.
• Nonresident vehicles operated in accordance with reciprocity agreements.
• Forklift trucks that are moved unladen over the highways (VC §9409).
• Commercial-type motor vehicles manufactured in 1936 or prior (VC §9401(a)). A weight fee is due if commercial license plates are requested for the vehicle (VC §9401(b)).
• A vehicle operated or moved over the highway exclusively for the purpose of historical exhibition or other similar noncommercial purpose (VC §9400).
• A commercial vehicle with an unladen weight of 8,000 pounds or less which is registered to a disabled person and displays Disabled Person License Plates (VC §9410).

The following vehicles are not subject to weight fees and are issued regular license plates (VC §9107):

• Vanpool vehicles as defined in VC §668.
• Vehicles operated by a passenger stage corporation as defined in the California Public Utilities Code (CPUC) §226, when the following occur:
  • The vehicle is operated exclusively on any line(s) having a one-way route mileage not exceeding 15 miles in either urban or suburban areas or between cities in close proximity or between nonadjacent urban or suburban areas or cities; the area between which is substantially residential, commercial, or industrial, as distinguished from rural.
  • Principal business of the corporation is the operation of vehicles on a route or routes as defined above.
• Any vehicle operated exclusively on any line or lines within the limits of a single city by a person engaged as a common carrier of passengers between a fixed terminus or over a regular route, 98 percent of whose operations are exclusively within the limits of a single city, and who by reason thereof is not a passenger stage corporation subject to the jurisdiction of the CPUC.
• Any vehicle purchased with federal funds under the authority of United States Code (USC), Title 49, §1612 Chapter 35, commencing with §3001 for the purpose of providing specialized transportation services to senior citizens and handicapped persons, by public and private nonprofit operators of specialized transportation service agencies.

A Statement of Facts (REG 256) (PDF) form describing the use of the vehicle must be included with any application for registration or registration renewal of these vehicles.

3.080 Waiver of Fees and/or Penalties (VC §9562)

The conditions under which DMV is authorized to waive unpaid registration fees and/or penalties due are very specific.

Transfer Applications

• Penalties may be waived upon payment of the registration fees due when a transferee (including a dealer) applies for transfer and it is determined that the registration penalties accrued prior to the transferee’s date of purchase and the transferee was not aware that the registration fees for the current or prior registration years were unpaid and due (VC §9562(a)).
• Fees and penalties may be waived for any registration year when a transferee (including a dealer) applies for transfer and it is determined that the registration fees became due prior to the transferee’s date of purchase and the transferee was not aware that the fees were unpaid and due if the license plate assigned to the vehicle displays a valid year sticker issued by DMV that matches the year for which the transferee is requesting a waiver of fees and penalties (VC §9562(c)).
  • The license plate assigned to the vehicle must display a valid year sticker issued by DMV that matches the year for which the transferee is requesting a waiver of fees and penalties (VC §9562(c)).
  • A Statement of Facts (REG 256) (PDF) form stating that the transferee was not aware the fees were unpaid and due and indicating the sticker number on the license plate must be submitted with the application.

Other Applications

• Penalties may be waived on an application for registration upon payment of the fees due when the manager or their designee determines that circumstances caused the penalties to accrue through no fault or intent of the owner (VC §9562(b)).
• Fees and penalties may be waived only when the customer (including a dealer) has a current validation sticker on the license plate which matches the year for which fees are believed to have been paid and the registration fees became due
  prior to the customer’s purchase/transfer date.
  • The transfer fee and any other fees due must be paid. If a current validation sticker is not displayed on the license plate, all registration fees due must be paid and only the penalties may be waived.
  • A Statement of Facts (REG 256) (PDF) form stating the sticker number on the license plate and that the applicant/dealer was not aware of any unpaid fees and penalties must be submitted with the application.

Waiver of Penalties on Vehicles Sold at Wholesale Auction (VC §9561.5)

DMV shall waive any penalties due for late payment of registration renewal fees on a vehicle if all of the following criteria are met:

• The vehicle is sold through a dealer conducting a wholesale motor vehicle auction as provided in VC §4456(b).
• Immediately prior to the sale the vehicle was registered as a leased vehicle.
• Delivery of the vehicle to the dealer conducting the wholesale motor vehicle auction is not later than 25 days after the termination of the lease.
• The date of termination of the lease and the date of delivery to the auction is reported on the application for registration or transfer.
  • This may be done on a REG 256 submitted with the application.

Stolen or Embezzled Vehicles (VC §4605; R&TC §10858)

Fees or penalties do not accrue as a result of operation of a stolen/embezzled vehicle.

DMV may waive the renewal fees and penalties as follows:

• When the stolen or embezzled vehicle is subsequently recovered by the owner and the vehicle was not operated between the date the registration expired and the theft/embezzlement date.
  • The current renewal fees become due upon return of the stolen/embezzled vehicle to the owner’s possession and those fees or a PNO must be filed within 20 days of that date.
  • A Miscellaneous Certifications (REG 256A) (PDF) form must be submitted with the application.
• When an application for “title only” of an unrecovered stolen or embezzled new (unregistered) vehicle is presented.
• When an application for a “transfer only” of an unrecovered stolen or embezzled used vehicle is presented.

Deployed Military (VC §9560)

• Penalties only shall be waived for late renewal for any period during which the registered owner was deployed to a location outside California. Deployment does not include:
  • Temporary duty for the sole purpose of training or processing.
  • A permanent change of duty station.
• To qualify for deployed military renewal penalty waivers, the applicant must submit:
  • An application for registration renewal with the appropriate fees within 60 days after termination of deployment.
  • Proof of temporary military duty during a period when a Presidential Executive Order specifies the United States is engaged in combat or homeland defense and be a member of the Armed Forces, Armed Forces Reserve, or the National Guard who has been called to active duty or active service.
  • A Statement of Facts (REG 256) (PDF) form stating they are a member of the Armed Forces, Armed Forces Reserve, or the National Guard and the termination date of their deployment.
• Deployment does not include temporary duty for the sole purpose of training or processing or a permanent change of station.

Note Only penalties incurred during deployment may be waived.

3.075 Vehicle License Fee (VLF) (CR&TC §§10751-10753)

The VLF is collected upon original registration and registration renewal for automobiles, motorcycles, trailer coaches, park trailers, and commercial vehicles.

VLF for fees due:

• After 1/1/05 is .65 percent of the market value of the vehicle.
• On or after 5/19/09, through 1/1/05 is 1.15 percent of the market value of the vehicle.
• Prior to 5/19/09, is .65 percent of the market value of the vehicle.

The VLF is subject to a penalty based on the date the fee was paid. See the Waiver of Fees and/or Penalties section in this chapter.

The market value of a vehicle is depreciated for each registration year of its life in accordance with the 11th year depreciation schedule, (park trailers have an 18-year depreciation schedule) beginning with the first year as a new vehicle or first classification year for VLF purposes.

See the City and County Fees section in this chapter for VLF exceptions/modifications.

Follow the chart to determine the purchase price/market value:

Step 1

The market value is determined by the cost to the consumer when the vehicle is sold new or the year the vehicle was transferred to the current owner.

The cost price:

• Includes the full purchase price of the vehicle with accessories and modifications made by the seller.
  • The value of a trade-in, rebate, or exchange of a vehicle is not deducted from the purchase price.
• Does not include tax, smog certification costs, document preparation fees, license fees, and finance charges.
• Is based on the cost price to the dealer for a new or nonresident vehicle registered to the dealer.
• Does not include the vehicle modifications necessary to enable a disabled person to use or operate a vehicle.
  • Applications for registration of modified vehicles must include evidence of the cost of the vehicle and a bill of sale or invoice identifying the modifications and costs.

Step 2

• Include the federal excise tax (FET) in the cost price upon the first retail sale of a truck or a truck chassis with a GVW of 33,001 pounds or more.
• The FET is not included for sales or use tax purposes.

Step 3

When an incomplete new commercial vehicle to be altered or modified before registration is sold and delivered to the buyer, enter the cost of the cab and chassis or chassis only on the Application for Registration of New Vehicle (REG 397) form.

Year Sold vs. Asterisk Year

Two different “years” are assigned to a vehicle and used when determining VLF:

• Year First Sold—Usually the year in which the vehicle was first sold as a new vehicle. This designated year is used to determine the VLF depreciation starting point, and each year until the vehicle is resold or otherwise reclassified.
• Asterisk Year—Usually the year when a vehicle is transferred to a new owner, a nonresident purchased the vehicle, or an alteration places the vehicle in a different VLF class.
  • An asterisk year can also be assigned when a commercial vehicle is purchased new in December in order to implement the correct depreciation schedule.

Exceptions: An asterisk year is not assigned on:

• Transfer of a leased vehicle from the lessor to the lessee.
• Transfer of a repossessed vehicle to the repossessor.
• Transfers between certain family members who are exempt from use tax.
• Transfer of a vehicle to the insurance company after a total loss settlement.
• Vehicles being junked.

VLF Class

• The VLF class classification is a two letter (alpha) code based on the purchase price or current market value.
• The VLF class is established when the vehicle is sold new or first registered in California and is usually changed when a vehicle is transferred or modified as to require reclassification.
• The assigned VLF class and the year first sold or asterisk year (*YR), if present, is used to determine the VLF.

Note The year model is never used to determine VLF.

VLF Rate Tables

DMV publishes three VLF rate tables which list the VLF classifications and corresponding fees.

• VLF (.65%) Rate Table (includes CVRA vehicles) (REG 360).
• VLF (1.15%) Vehicle License Fee Rate Table Park Trailers (REG 364).
• VLF (1.15%) Vehicle License Fee Rate Table (REG 365) for all vehicles except CVRA vehicles and park trailers.

Obtain a copy of the REG 360 (PDF), REG 364 (PDF), or the REG 365 (PDF) by submitting a written request by mail or fax to:

Department of Motor Vehicles
Materials Management Section
Inventory Control Operations
4201 Sierra Point Dr., Ste. 112
Sacramento, CA 95834-7900
Fax Number: (916) 928-7900
Call (916) 928-7901 if you have a question about your order.

Determining the VLF Amount

• Determine the amount of the VLF by using the:
  • VLF (.65%) Vehicle License Fee Rate Table (REG 360) (PDF) (includes CVRA vehicles).
  • VLF (1.15%) Vehicle License Fee Rate Table for Park Trailers (REG 364) (PDF).
  • VLF(1.15%) Vehicle License Fee Rate Table (REG 365) (PDF) for all vehicles except CVRA vehicles and park trailers.
• One or more of the following are required:
  • Purchase price or current market value.
  • Year first sold or asterisk year.
  • VLF class currently shown on the California title.

Note The online Vehicle Registration Fee Calculator can be used to obtain an estimate of all registration fees due for new and nonresident vehicles or the amount of VLF paid in a prior year for tax purposes.

New Vehicle or Nonresident Vehicle Sold to a New Owner

The VLF will be calculated using the purchase price or current market value.

• Locate the cost price of the vehicle in the far left column.

Example: $12,479 is within the $12,400 – $12,599.99 range and is assigned the VLF class “CX.”

• Collect the fee shown in the first column.

Example: Using the VLF class “CX” and the:

• REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $81.
•  REG 364 (for park trailers) the VLF would be $122.
•  REG 365 (for all vehicles except CVRA vehicles and park trailers), the would be $144.

Nonresident Vehicle Registered by Out-of-State Purchaser

VLF will be determined by the purchase price and the year the owner purchased the vehicle.

• Locate the cost price of the vehicle in the far left column.

Example: $12,479 is within the bracket $12,400 – $12,599.99 and is assigned the VLF Class “CX.”

• Using the first column as the current year, count back to the year the vehicle was purchased by the owner.

Example: If the owner purchased the vehicle two years prior, start with the first column as the current year, count back (to the right) two columns to that year.

• Collect the fee shown in the third column.

Example: Using the:
— REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $65.
— REG 364 (for park trailers) the VLF would be $79.
— REG 365 (for all vehicles except CVRA vehicles and park trailers), the VLF would be $115.

California-Registered Vehicle Transferred Prior to Expiration Date

VLF will be determined by the current purchase price or market value:

• Locate the cost price of the vehicle in the far-left column.

Example: $13,479 is within the bracket $13,400 – $13,599.99 and is assigned the VLF class “DC.”

• Collect the fee shown in the first column.

Example: Using the:
— REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $88.
— REG 364 (for park trailers) the VLF would be $132.
— REG 365 (for all vehicles except CVRA vehicles and park trailers), the VLF would be $155.

California-Registered Vehicle Transferred After Expiration Date

VLF will be determined by the current VLF class and year sold or *YR, regardless of the purchase price of the new owner.

• Locate the current VLF class of the vehicle in the far-left column.
• Locate the year sold, or *YR, if present.
• Using the first column as the expiration year, count back (to the right) to the appropriate year for the *YR, or if none present, the year sold.

Example: If the *YR of the vehicle is two years prior, start with the first column as the current year, count back (to the right) two columns to that year.

• Collect the fee shown in that column.

Example: If the VLF class was “CV,” using the:
— REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $63.
— REG 364 (for park trailers) the VLF would be $77.
— REG 365 (for all vehicles except CVRA vehicles and park trailers), the VLF would be $111.

MA Class Vehicles

Vehicles with a purchase price of $96,400 or more are assigned VLF class “MA”.

• The VLF due for these vehicles varies based on the actual selling price for the vehicle.
• The VLF is calculated programmatically.
• Direct any VLF-related questions to the DMV Customer Communications Section at (916) 657-6560.

Modified/Exempt VLF

The following are assessed a modified VLF or are exempt from VLF:

• California Native American Tribes/Tribal Member Vehicles—Owners are exempt from VLF when a Miscellaneous Certifications (REG 256A) (PDF) form with the Native American Certification section completed is submitted with the application.
  • See Chapter 6 for more information.
• Federally-Recognized Native American Tribe Vehicles (VC §9104.5 and R&TC §10781.1)—Owners are exempt from VLF and all other fees, when a REG 256A with the Native American Certification section completed is submitted with the application.
  • See the New Vehicles Sold by California Dealers section in Chapter 6 for more information.
• Historical Vehicles (VC §5004 and CR&TC §10753.5)—qualified vehicles assigned Historical Vehicle or Horseless Carriage License Plates are subject to a VLF of $2 each year. See the Special License Plates section in Chapter 21 for
  more information.
• Nonresident Military (NRM) Personnel Vehicles—qualified nonresident military and their nonresident spouses are exempt from VLF when a Nonresident Military Exemption Statement (REG 5045) form is submitted with the application.
• Specialized Transportation Vehicles—are exempt from VLF when a Certificate of Exemption for Specialized Transportation Vehicle Exemption Certification (REG 345) form is submitted with the application.

3.070 Statute of Limitation (VC §9800)

DMV’s lien for renewal, transfer, use tax, parking violations, and other fees due expires three years from the date the fee(s) first became due, unless the lien is perfected as explained in this section (VC §9800(d)). Continued use of a vehicle beyond the registration expiration date does not extend the statute of limitation date.

Fees deposited during the 3-year period must be used for the year represented and cannot be used for any subsequent year.

To determine the date that the DMV’s lien expires, subtract three years from the date of the application.

• Any fees which became due prior to that date cannot be collected because DMV’s lien has expired, unless the lien has been perfected.

Example: On applications presented 06/22/2015, fees due prior to 06/22/2012 cannot be collected. However, if fees were deposited for the prior year(s), the fees cannot be refunded or used for any subsequent year.

Perfected Lien (VC §9800(d))

A lien is perfected when notice is mailed to the registered and legal owners of record and recorded on the vehicle record(s). It expires five years from the date of perfection.

3.065 Smog Certification Fee (VC §11713.1 and CH&SC §44060)

Dealers may charge buyers a fee not to exceed $50 for emission testing plus the actual fee charged for issuance of the smog certification.

Some vehicles cannot be issued certificates by a smog station because the vehicle’s onboard diagnostic (OBD) system data is inappropriate for the vehicle being tested. However, certificates may be issued for those vehicles by a referee.

3.060 Registration Fees (VC §§9250–9265 and 9400.1)

To register a vehicle in California, certain basic fees are collected, based on the type of vehicle, county of residence, and type of transaction.

Other miscellaneous fees may also be due, based on the type of vehicle and type of transaction.

The regular fees required for vehicles subject to registration are:

• Registration fee (RF).
• California Highway Patrol (CHP) law enforcement fee.
• Miscellaneous county fees which DMV is mandated to collect.
• Vehicle license fee (VLF).
• Weight fee (WF) for commercial vehicles.
• Reflectorized license plate fee.

Other fees may be due, depending on the type of application.

• The registration fee is collected on original registration and registration renewal of every vehicle and trailer coach subject to registration.
• The fee is not collected on off-highway vehicles (OHV) or permanent trailer identification (PTI) trailers.
• A Commercial Vehicle Registration Act (CVRA) registration fee and CVRA CHP Fee is collected in addition to the regular registration fee and CHP fee on commercial vehicles subject to CVRA fees.
• The registration fee is subject to a penalty based on the date the fee was paid. See the Waiver of Fees and/or Penalties section in this chapter.

3.055 Planned Non-Operation Certification (PNO-REG 102)(VC §4604, 4604.5, and CR&TC §10856)

The vehicle owner is responsible for either filing a PNO or renewing the registration, even if a billing notice is not received. The owner is issued an Acknowledgment of Non-Operational Status Receipt after the department processes the PNO fee.

PNO Guidelines—A PNO:

• Must be filed by midnight of the registration expiration date to avoid a penalty.
• May be filed up to 90 days after the registration expiration date if the vehicle has not been operated in any manner, but the PNO penalty is due, as explained in the Penalties section in this chapter.
• May be filed up to 60 days prior to the current registration date.
• Is not required to be filed annually. Renewal fees must be paid on or prior to the date of first operation to avoid a late penalty.
• Cannot be filed for vessels and trailer coaches, which must be registered at all times regardless of use.
• Must be filed for vehicles registered on a partial year registration (PYR) basis by 12/31 of the registration year following the PYR year to avoid a penalty. (The certificate of nonoperation (CNO) date can be up to 30 days beyond the date fees received).

PNO Exceptions (VC §4604(d))—PNO requirements do not apply to vehicles:

• That expire while in a dealer’s, lessor-retailer’s, or manufacturer’s inventory.
• Being held pending a lien sale by a garage keeper or towing service operator.
• Registered as part of an apportioned international registration program (IRP) fleet. IRP vehicles are subject to PNO only if deleted from the fleet and subsequently registered in California on a full-year or PYR basis. Accept a CNO from the date of deletion.
• Registered on a PYR basis. Refer to PNO Guidelines in this section for PNO filing requirements.
• Of historic interest and value as described in VC §§5004, 5004.5, or 5051 (also see Historical Interest Vehicles in this section).
• Identified as special equipment (SE).
• Stolen and unrecovered.
• Registered out of state.
• Issued a Nonrepairable Certificate.

Dealer, Lessor-Retailer, Manufacturer Inventory Vehicles (VC §4604)—A PNO or CNO is not required for a vehicle or trailer coach when the registration expires while held in the inventory of a dealer, lessor-retailer, or manufacturer or
when transferred between dealers, if the application contains evidence that the registration was valid when the registered owner sold the vehicle/trailer coach to the dealer, lessor-retailer, or manufacturer. Acceptable evidence could be the date of release on the title, power of attorney, or bill of sale dated prior to the last expiration date.

Note Vehicles on consignment, including those consigned to an auctioneer, are not exempt from PNO requirements.

Penalties continue to accrue on vehicles that enter a dealer’s inventory with expired registration. The penalty is not frozen at the penalty rate due at time the vehicle entered the dealer’s inventory unless the fees and penalties due are posted during that penalty rate period. The fees for a vehicle that expires while in a dealer’s inventory are due upon sale of the vehicle and must be paid within 30 days to avoid penalties. If sold more than once, fees are due within 30 days of the first sale date.

Dishonored Checks (DC)—A PNO application is canceled if the PNO fee is paid by a DC. The applicant must register the vehicle or file a new PNO, as applicable. If a new PNO is submitted:

• Prior to the expiration date, only the PNO fee is due.
• Within 90 days after the expiration date, the PNO fee and PNO penalty are due.
• 91 or more days after the expiration date, the vehicle must be registered and full-year fees and penalties are due.

Lien Sale Vehicles (VC §4604)—Neither a PNO or CNO is required for a vehicle on which the registration expires while held pending a lien sale by the keeper of a garage or the operator of a towing service.

Salvage Vehicle Records—Vehicles with records which indicate a “Salvage Certificate Issued” or “Salvage Retention” status, may be placed on PNO status until the vehicle is revived.

Unavailable Records—A Verification of Vehicle (REG 31) (PDF) form is required before a PNO application can be accepted for a vehicle with unavailable records, unless a California title in the applicant’s name is presented. See the Miscellaneous Originals section in Chapter 7 for more information.

Vehicles Registered Under the Partial Year Registration (PYR) Program (VC §9706(d))

The PNO for a vehicle last registered as PYR and not operated since the last PYR registration must be filed by December 31 of the following year.