Did a pre-1923 vehicle with special horseless-carriage plates trigger use tax as a vehicle required to be registered?

Plain-English summary

The memorandum examined motor vehicles made in 1922 or earlier that received optional special "horseless carriage" plates for historical exhibition or similar use.

Section 5004 provided special identification plates in place of regular license plates, while section 4018 said vehicles with those plates were exempt from registration. The source therefore concluded that issuing special plates was not vehicle registration.

Because the vehicles were not required to be registered, the 1963 private-sale use-tax system did not apply. Retail sales of special-plated horseless carriages were instead subject to sales tax unless the transaction qualified as an occasional sale under section 6006.5.

The complete supporting memorandum conflicts with the current annotation metadata's statement that use tax applies at registration. This page records the linked source's actual conclusion rather than combining the two into an invented result.

What this means for you

Buyers and sellers of antique vehicles

The historical result depended on whether the owner chose special identification plates or ordinary registration. Plate status changed which tax system applied.

Accountants and tax professionals

Resolve conflicts between annotation summaries and complete source documents before relying. Current antique-vehicle registration and tax law may differ sharply from this 1963 treatment.

Common questions

Q: Which vehicles qualified for the special plates?

A: Motor vehicles manufactured in 1922 or earlier and used primarily for historical exhibition or similar purposes.

Q: Were special identification plates treated as registration?

A: No, under the linked memorandum.

Q: Did use tax apply under that source?

A: No. The memorandum said the vehicles were exempt from registration.

Q: Could sales tax still apply?

A: Yes, unless the transaction was an occasional sale.

Citations and references

• California Revenue and Taxation Code §§ 6006.5 and 6389
• California Vehicle Code §§ 4018 and 5004, as then in effect
• Chapter 1858, Statutes of 1963, as discussed in the memorandum

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 585.0480
• Original supporting opinion: 585.0480 PDF

Original ruling text

State of California

Memorandum
To

: Mr. Harry L. Say

From

: R. H. Anderson

585.0480
Date :

Board of Equalization
Legal Division

December 20, 1963

Subject : Antique Vehicles (Horseless Carriages)

A question has been raised regarding the application of tax on retail sales of “horseless carriages” licensed under the Vehicle Code, specifically, whether use tax applies under the provisions of Chapter 1858, Statutes of 1963, when the vehicle is registered pursuant to a retail sale. The application of use tax on motor vehicles sold at retail by persons who are neither dealers nor wreckers (dismantlers) licensed under the Vehicle Code applied only to motor vehicles subject to registration under the code. Section 6389 of the Revenue and Taxation Code exempts from the computation of the amount of sales tax the gross receipts from sales of motor vehicles subject to registration under the Vehicle Code when the retailer is not a licensed dealer or wrecker (dismantler). The exemption does not apply to gross receipts of a motor vehicle whenever the purchaser is not required to register the motor vehicle under the Vehicle Code. The question regarding retail sales of “horseless carriages” then turns on whether they are required to be registered within the meaning of registering motor vehicles under the code. Section 5004 of the Vehicle Code, “Vehicles of Historic Value,” provides for the issuance of “special identification plates” for motor vehicles manufactured in the year 1922 and prior thereto that are operated or moved over the highway primarily for the purpose of historical exhibition or other similar purpose. The special identification plates are issued in lieu of regular license plates. No pink slip is issued on “horseless carriages.” Instead, an identification tag is issued, and the special plates are transferable. It should be kept in mind that the licensing of a motor vehicle manufactured in 1922 or prior thereto as a “horseless carriage” is optional with the licensee. It may, at the owner’s option, be registered with regular license plates. Section 4018 of the Vehicle Code, “Special Identification Plates,” provides that vehicles which are issued special identification plates pursuant to section 5004 are exempt from registration.

Harry L. Say

-2-

December 20, 1963
585.0480

Thus, issuance of special identification plates is not a registration. Vehicles that qualify for the special plates and are issued special plates are not subject to use tax under Chapter 1858, Statutes of 1963. Accordingly, retail sales of such vehicles are subject to sales tax unless such transactions are “occasional sales” under section 6006.5 of the revenue and Taxation Code.

RHA:cw