Did California presume a service member bought an out-of-state vehicle for California use while serving under orders outside the state?

Plain-English summary

A service member under orders requiring presence outside California bought a vehicle outside the state before receiving orders to a California station, base, or port.

Tax counsel said the member was presumed not to have purchased the vehicle for California use and therefore was not subject to the section 6248 presumption.

For Navy personnel stationed aboard a carrier or other ship outside the continental United States, the ship's orders counted as the individual's orders because separate individual or collective orders were not issued. The orders directing the ship to return to the United States controlled the timing analysis.

What this means for you

Service members purchasing vehicles while stationed elsewhere

The timing of the purchase against military orders mattered. The historical presumption did not apply when the purchase preceded orders to California duty.

Accountants and tax professionals

Preserve purchase documents, individual orders, ship orders, duty-station records, and the date California orders were received.

Common questions

Q: What purchase timing qualified under the memorandum?

A: Buying outside California while under out-of-state orders and before receiving orders to a California duty location.

Q: Did the section 6248 presumption apply?

A: No, on those facts.

Q: What orders controlled for a sailor aboard a carrier?

A: The ship's orders, including the order directing its return to the United States.

Q: Why did ship orders count personally?

A: The memorandum said individual or collective orders were not issued in that situation.

Citations and references

• California Revenue and Taxation Code § 6248

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 585.0163
• Original supporting opinion: 585.0163 PDF

Original ruling text

State of California

Board of Equalization

Memorandum

585.0163

To:

Audit Review & Refunds (GMD)

From:

Hdqrs. – Tax Counsel (RHA)

Subject:

Vehicle Use Tax and Persons in the Armed Services Under Orders Reference:

Date:

August 21, 1972

Memorandum dated August 15, 1971 from San Diego Compliance.

A person in the armed services under orders which requires his presence outside of California who purchases a vehicle outside the state while under said orders and prior to receiving orders to some station, base, or port in California is presumed not to have purchased the vehicle for use in California. In other words, he will not be subject to the presumption under Section 6248. A person in the Navy who is stationed aboard a carrier or other ship that is outside the Continental United States under orders will be deemed to be personally under said orders since individual or collective orders are not issued. Thus, the orders that call for the ship to return to the United States will be controlling in the same manner as if they were personally issued to the individual.

RHA:lb
cc:

San Diego – Compliance (JG)