Was a serviceman's private purchase of a house trailer on an Air Force base subject to use tax when it stayed on federal property and off highways?

Plain-English summary

One service member bought a house trailer from another at Beale Air Force Base. The trailer had never been on a highway after arriving at the base, had never been licensed with DMV, and the new owner did not intend to use it on highways or obtain a license.

DMV advised that registration was not required while the trailer stayed on government property and remained off public highways.

Because the trailer was not subject to registration, counsel concluded that the special vehicle use-tax provisions did not apply. The transaction was an exempt occasional sale, and the buyer was entitled to a refund of the $150 use tax paid.

What this means for you

Owners of trailers kept entirely on federal property

The historical result depended on the trailer staying off public highways and outside DMV registration requirements.

Accountants and tax professionals

Confirm location, highway use, licensing history, buyer intent, DMV requirements, and refund-claim deadlines. Moving the trailer onto public roads could change the analysis.

Common questions

Q: Where was the trailer located?

A: Beale Air Force Base.

Q: Had it been licensed with DMV?

A: No.

Q: Why did use tax not apply?

A: DMV did not require registration while it remained on government property and off highways.

Q: How much tax was refunded?

A: $150.

Citations and references

• Chapter 3.5 of the California Sales and Use Tax Law, as referenced in the memorandum

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 585.0060
• Original supporting opinion: 585.0060 PDF

Original ruling text

State of California

Board of Equalization

Memorandum

585.0060

To:

Marysville – Compliance (COE)

From:

Tax Counsel (RHA)

Subject:

______

Date:

April 11, 1969

Reference is made to your memo of April 8 regarding the question of use tax on a house trailer purchased by one serviceman from another. You state that the trailer is located on the Beale Air Force Base, it has never appeared on the highway since it first came to Beale, has never been licensed at the DMV, and the new owner does not intend to use it on the highways or license it. I checked with DMV and learned that they would not require the serviceman to register the trailer coach so long as it remained on the government property and is not used on the highways. Since the vehicle is not subject to registration, it is not subject to use tax under the provisions of Chapter 3.5 of the Sales and Use Tax Law. Under these circumstances, it would be an exempt occasional sale and "O" should get a refund of the $150 use tax he paid.

RHA/vs [lb]