Did use tax apply when a traveler bought a car for European use and intended sale there but later brought it to California after failing to find a buyer?

Plain-English summary

A traveler bought an automobile in Europe for summer travel and intended to sell it there after two months. When she could not find a buyer, she brought the car to California and sold it to the letter's recipient.

California found that she had not purchased the vehicle for use in this state. Her original intent was foreign travel and a foreign sale, so she did not owe California use tax on the car under the stated facts.

Common questions

Did later bringing the car to California change the original purchase intent?

No. The source focused on her intent when she bought the car.

Did the opinion decide the recipient's tax treatment?

No. It expressly addressed whether the traveler owed use tax.

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/570-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/570-0580.pdf

Original ruling text

570.0580

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

August 22, 1960

Dear Mr. __,
This is in reply to your letter of August 12.
It is our understanding from your letter that a Mrs. _ purchased a Volkswagon in
Europe this summer, intending to use it for travel there and to sell it there after it for two months.
Mrs. was unable to sell the car so she brought it to this state and sold it to you.
On the basis of the foregoing statement of facts, it is our opinion that Mrs. ___ did not
purchase the vehicle for use in this State inasmuch as she did not originally intend to bring it to this
State. Therefore, she is not liable for payment of use tax with respect to the Volkswagon.

Very truly yours,

George A. Trigueros
Associate Tax Counsel
GAT:lm
cc:

Santa Barbara - Compliance