Hello, my friends. It’s a pleasure informing you of all the latest news and regulations in our Industry.
I have special information regarding Out of State deliveries and the payment of the use tax to the State Board of Equalization.
The use tax applies to purchases made outside of California; such as on trucks and trailers owned by California residents purchased for use in California. If the truck is purchased by a California Resident and brought into California within the first 12 months of ownership, it is presumed the property was purchase for use in California and the tax is applied.
However, your purchase may qualify for exemption from the use tax if you purchased the vehicle for use in interstate or foreign commerce and you primarily use the vehicle in interstate.
How can my purchase qualify for the interstate commerce exemption?
You must take the delivery outside California.
You must first work your equipment outside California.
One-half or more miles traveled by your vehicle must be commercial miles outside California during the first six-month period immediately following the truck or trailer into California.
Your first trip occurs when the vehicle hauls cargo or is dispatched from outside California.
You have a contract or a bill of Lading ready to pick up in California prior to the purchase.
If the first load occurs in California, the tax will be applied regardless of how often the truck or trailer is later used in interstate commerce. If you take a delivery out of state and enter California without a contract, the tax applies.
What Records to Keep
To overcome the presumption your truck was purchased for use in California, keep the following records:
If purchased from a California Dealer, keep the BOE-448 Statement of Delivery outside Calif.
Keep the load confirmation, bill of lading, or other similar documents verifying the first load was outside California; do this for 6 months, remembering 51% of loaded miles have to be outside California.
How to Claim an Exemption
When the California BOE receives information regarding your purchase from a California dealer, you will receive a Combined State and Local Consumer Use Tax Return. If you qualify for the exemption, select line 3 of the return form and mail it with hard copies of your supporting documents to the BOE for review.
For additional information, please call the Customer Service number at: (800) 400-7115
And you all know my number already: (909) 365-8015