California – Used Car Dealer Records and Reporting Requirements

SALT Report 3790 – As a used car dealer selling, leasing, or using personal property in California, you are required to keep adequate records. In general, you must keep all required records to support your vehicle sales and the amount of tax due for at least four years.

The BOE has a Tax Guide for Motor Vehicle Dealers available online. This guide helps you to easily find information on common tax issues facing dealerships like yours and provides links to relevant resources. Topics discussed include:

• How to file your sales and use tax return

• How tax applies to sales and purchases of gasoline

• How tax applies to vehicles sold with special pricing and incentives

• How to keep good records

• How tax applies when a trade-in is accepted on the sale of a vehicle

• How to claim bad debts

• The required documentation to support exemptions

• The California Tire Fee

For further Information:

http://www.boe.ca.gov/pdf/l441.pdf