SALT Report 3109 – The California State Board of Equalization adopted a new regulation to implement legislation enacted in 2012. AB 2618 provides that any sale of a vehicle, mobile home, commercial coach, or any salvage certificate vehicle by a person making a sale at auction or a dismantler licensed under the Vehicle Code is presumed to be making a taxable retail sale, and not a sale for resale.
The person may accept a resale certificate from someone who certifies that they are licensed, registered, regulated, certificated, or authorized dealers, dismantlers, automotive repairers, or scrap metal processors. The new regulation describes the form of the resale certificate that may be taken and the evidence that may be used to rebut the presumption.
These provisions take effect on January 1, 2014.
For Further Information