The California Department of Tax and Fee Administration (CDTFA) has updated Publication 34 (Motor Vehicle Dealers), to include 2020 legislation that, effective 1/1/2021, imposes new reporting and payments requirements on certain used vehicle dealers.

The new discussion, entitled “Used Vehicle Dealers” (in the section on “Motor Vehicle Sales”), provides in part that effective 1/1/2021, certain used vehicle dealers are required to pay sales tax on their retail sales of vehicles when a vehicle registration application is submitted to the Department of Motor Vehicles (DMV). The CDTFA previously discussed these changes in California Department of Tax and Fee Administration Special Notice L-766, 11/01/2020.

The CDTFA also made a number of nonsubstantive changes to the publication. Publication 34 is designed to help motor vehicle dealers understand California’s sales and use tax law as it applies to the sale, lease, or use of a vehicle.

(This is Blog Post #1009)