Was a vehicle sale exempt when a servicemember took delivery in California, drove it out on a permit, and registered it in another state?

Plain-English summary

A redacted vehicle seller's stated May 10, 1957 letter asked about sales to servicemembers who took California delivery, drove vehicles outside on driveaway permits and registered them elsewhere. The official response is printed May 3, before the request it identifies; the request and transaction records are absent.

Counsel said there was no exemption. In his analysis, California imposed sales tax on the retailer, so the cited Soldiers' and Sailors' Civil Relief Act did not prohibit it as a tax on the servicemember. The letter identifies no section of that Act.

California delivery completed the sale, and later purchaser removal and registration did not eliminate retailer liability. Counsel said the same principle applied to all tangible personal property, not only vehicles.

The letter said exemption would require the seller to contract for outside delivery, or the customer to order through the seller but take delivery at the factory or another outside point. No such alternative transaction is documented. The stated Ruling 55 enclosure is absent.

The live annotation uses May 23, 1957, creating a second date alongside the PDF's May 3 and stated May 10 request. It preserves the taxable-delivery result but omits the federal theory, all-property statement, alternative structures, missing source and records, and later-outcome gap.

Common questions

Did military status itself exempt the sale?

No. Counsel said California's sales tax was imposed on the retailer and therefore was not prohibited as a tax on the servicemember under the cited historical Act.

Did a driveaway permit change the delivery point?

No. The vehicle had already been delivered to the buyer in California.

Did registration in another state change the result?

No. Later removal and registration did not undo the completed California sale.

What outside-delivery structures did counsel mention?

A seller contract requiring outside delivery, or buyer delivery at the factory or another point outside California.

Which date controls this page?

The PDF's formal May 3 date controls under the source-date rule, while the impossible May 10 request chronology and live annotation's May 23 date remain disclosed.

Is the enclosed historical ruling available in the PDF?

No. The letter says Ruling 55 was enclosed, but the published source omits it.

Citations and references

• Soldiers' and Sailors' Civil Relief Act — cited historical federal theory without a section
• Sales and Use Tax Ruling 55, “Interstate and Foreign Commerce” — stated enclosure absent
• May 10 request and transaction records — described but not reproduced; chronology conflicts with the May 3 response
• Official Annotation 325.0680 — uses May 23 and preserves the result while omitting material provenance and limits

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: Annotation 325.0680
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/325-0680.pdf

Original ruling text

325.0680

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

May 03, 1957

Attention:
Gentlemen:
This is in reply to your letter of May 10 in which you inquire as to any basis for exemption from sales tax of sales to servicemen who take delivery of the vehicle in this State but drive it from the state on a drive away permit and register it in another state. There is no exemption from the sales tax under this type of a situation. The Soldiers’ and Sailors’ Civil Relief Act does not apply, because in California the sales tax is a tax upon the retailer and, according, is not legally prohibited by the Soldiers’ and Sailors’ Civil Relief Act as a tax upon the serviceman. When the vehicle is delivered to the purchaser in this State the sale is completed insofar as the sales tax is concerned and there is no provision in the law which exempts the retailer from his tax liability even though the purchaser subsequently transported the vehicle outside the State. This is true as respects any tangible personal property and not vehicles alone. In order to obtain exemption, it would be necessary for you to contract with your customer to deliver the vehicle to him at such point. Of course, your customer could order the vehicle from you taking delivery at the factory or other point outside this State without you being liable for sales tax. For you further information, we are enclosing a copy of sales and used tax Ruling 55, “Interstate and Foreign Commerce”.

Very truly yours,

E. H. Stetson
Tax Counsel
EHS:ds
Enclosure