Did storing a car in California create use tax when the owner intended to live in Hawaii and ship the car there, then later decided to sell it?

Plain-English summary

An owner bought a 1952 Chevrolet through a Hawaii dealer and took delivery in St. Louis. He drove it to California, left it in storage, and proceeded to Hawaii intending to remain there and have the car shipped to him.

After deciding he would not need the car in Hawaii, he asked that it be sold. California found no use tax under those facts.

Common questions

Was California the intended place of use when the car was stored here?

No. The source says the owner intended to remain in Hawaii and have the car shipped there.

Did the later decision to sell change the result?

No under the memorandum's stated facts.

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/570-0840.pdf

Original ruling text

State of California

Memorandum

To:

Mr. D. E. Dawley

From:

E. H. Stetson

Subject:

G--- B---

Board of Equalization

570.0840

Sacramento
February 4, 1953

From your information and files I received a telephone call from a Mr. G--- on behalf of the above-named person. Mr. B--- purchased a 1952 Chevrolet, Serial Number XXXX-XXXXX, though a Hawaii dealer and took delivery in St. Louis. He drove the car to California, leaving it here in storage. He then proceeded to Hawaii where he intended to remain and have the car shipped to him. He subsequently determined that he was not going to need the car in Hawaii and requested that it be sold. Under these facts I do not believe the use tax applies.

EHS:ph