what is the board of equalization personal use tax on dealer inventory vehicles ??? no comments
the board of equalization requires payment of use tax
when personal use of a dealer inventory vehicle occurs
the board of equalization rules for personal use:
http://www.boe.ca.gov/pdf/reg1669-5.pdf
business use is not taxed
reconditioning use is not taxed
test drive usage is not taxed
personal use is taxed at one of two rates
for dealer owners:
1/40 per month of personal use
for example:
dealer acquires a used BMW for $ 24,000 with dealer location in san francisco
monthly taxable base would be $ 24,000 divided by 40 which equals $ 600.
sales tax rate equals use tax rate in san francisco 8.50 %
dealer would pay $ 51.00 to use this used BMW for each month of personal use
for salespersons with rental agreement:
1/60 per month of personal use
dealer acquires a used BMW for $ 24,000 with dealer location in san francisco
dealer creates rental agreement for personal use by licensed salesperson
monthly taxable base would be $ 24,000 divided by 60 which equals $ 400.
sales tax rate equals use tax rate in san francisco 8.50 %
dealer would pay $ 34.00 for licensed salesperson to use this used BMW for each month of personal use
good luck
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charlotte
800-901-5950
