If you have suggestions for improving this guide, please contact us via email. Customer Sales Tax Exemption Type Automotive Training (Code 9) Purchase of a motor vehicle by a private, non-profit, or public educational institution for use as an instructional aide in automotive training (auto body and mechanical repair courses) ** Note-This exemption does not apply to driver education vehicles in this case. Purchases of property for resale are not subject to tax provided the purchaser makes no use of the property except demonstration and display in the course of offering the property for sale in the regular course of business. If you claim that your vehicle purchase is exempt or nontaxable, the DMV may ask you to obtain a use tax clearance certificate from the CDTFA before allowing you to register the vehicle without paying tax. AV-10V Application is for motor vehicle exemption under North Carolina General Statute 105-330.3(b) Exemption or Exclusion. If you erroneously reported a lower purchase price than your actual purchase price to the DMV and did not pay enough use tax, you may make an additional payment using the CDTFA's online services and selecting the option to File a Return or Claim an Exemption for a Vehicle, Vessel, Aircraft, or Mobile Home under the Limited Access Functions. Trust transfers require copies of the trust title page, signature page, and property description pages, etc. For example, if the broker incorrectly collects tax based on an 8 percent tax rate when the applicable tax rate was really 9 percent, you will be billed for the additional remaining tax due. Generally, if your gross receipts from commercial deep sea fishing activities are less than $20,000, it is presumed that you are not regularly engaged in commercial deep sea fishing. Copies of any documentation verifying the exempt nature of the transaction should be included, as well as a copy of the current title. Changing the ownership of a vehicle, vessel, or aircraft may or may not cause a taxable sale or purchase. Please see our Vehicle section, Claiming an Exemption from the Use Tax, for more information. You must provide supporting documentation such as fuel, repair, mooring, and/or lodging receipts to verify the property's departure from California, plus documentation showing that the vessel did not return during the applicable test period. On the other hand, if, instead of reselling the vehicle within 10 days, the lessee makes a gift of the vehicle to a third party, the lessee owes tax based on the amount required to be paid by the lessee upon exercising the option to purchase the vehicle. You may mail, fax, or personally submit the application to your local office or the Consumer Use Tax Section at the following address: Consumer Use Tax Section MIC:37 If you purchase your aircraft for use outside of California, your purchase may not be subject to use tax. As a general matter, a vessel is required to be documented with the USCG if: Pleasure vessels meeting the above size requirement may be documented at the owner's option. How you report your purchase and pay the use tax on your vessel purchase depends on whether the vessel is a "documented vessel" or an "undocumented vessel.". Current tax rates can be found on our website. Sacramento, CA 94279-0037. CDTFA Sales and Use Tax Regulation §1567 states that use tax does not apply to the storage, use, or other consumption in this state by insurance companies of tangible personal property. If the donor did not pay tax on a purchase of a vehicle, vessel, or aircraft because it was purchased for resale, the donor owes use tax on the purchase because making the gift is regarded as a taxable use of the vehicle, vessel, or aircraft. If you paid tax to another state when purchasing your vehicle, you may be entitled to claim a credit for the tax previously paid to another state. 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