Did the exempt value of disability-related vehicle modifications carry over when a used modified vehicle was sold to another qualifying disabled buyer?
Apply this to your situation
This page answers the general question as of 1985. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
A vehicle had already been modified for use by a person with a physical disability and was later sold to another qualifying disabled buyer.
Counsel said the section 6369.4 exemption continued for the modification portion on the later sale. The exemption did not cover the entire vehicle.
The next owner had to qualify under the Vehicle Code section 22511.5 special-parking standard and had the burden of proving to DMV or Board staff the value attributable to the exempt modifications.
What this means for you
Buyers of used accessible vehicles
The historical exemption followed the qualifying modifications into a later sale, but only for their supported value.
Accountants and tax professionals
Separate the base vehicle value from the accessibility equipment and installation value. Preserve invoices, appraisals, or other evidence and confirm the buyer meets the current eligibility standard.
Common questions
Q: Did the exemption disappear on resale?
A: No. It continued for the modification portion when the next buyer qualified.
Q: Was the entire vehicle exempt?
A: No. Only the value of the qualifying modifications was exempt.
Q: Who had to prove the exempt value?
A: The subsequent owner registering the vehicle.
Q: Where was proof presented?
A: To DMV or Board staff.
Citations and references
- California Revenue and Taxation Code § 6369.4
- California Vehicle Code § 22511.5
Source
- Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
- Annotation page: Annotation 585.0317
- Original supporting opinion: 585.0317 PDF
Original ruling text
State of California
Board of Equalization
Memorandum
585.0317
To:
A. L. Cade
From:
Donald J. Hennessy
Subject:
Modifications to Vehicles for the Physically Handicapped
Date:
September 5, 1985
This is in reply to your memorandum of July 11, 1985. You ask whether subsequent sales of vehicles for physically handicapped persons, do the modifications continue to receive an exemption status under Revenue and Taxation Code Section 6369.4. As you are aware, Section 6369.4 provides: “There are exempted from the taxes imposed by this part the gross receipts from the sale, and the storage, use, or other consumption, in this state of items and materials when used to modify a vehicle for physically handicapped persons.” Pursuant to Section 6369.4, we are of the opinion that in subsequent sales of modified vehicles to physically handicapped persons, the modified portion of the vehicle continues to be exempt from use tax. We note that the term “physically handicapped” persons, as used in Section 6369.4 includes only those disabled persons described in California Vehicle Code Section 22511.5 as qualified for special parking privileges. As a practical matter, the subsequent owner of a modified vehicle, qualifying as a handicapped person, as that term in defined in California Vehicle Code Section 22511.5, has the responsibility of proving to the Department of Motor Vehicles, or to Board staff, the value of the modified portion of the vehicle, as Section 6369.4 only exempts the modified portion of the vehicle from use tax. DJH:ba
What does the law say today, for your facts?
This ruling is from 1985. Ezel checks current California tax law against your situation and cites the authority it relies on.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace