Personal Use Tax

When a dealer uses their dealer plate

to operate an inventory vehicle for personal use

a small amount of use tax is required per the CDTFA

Take the cost of the vehicle including reconditioning costs

use the CDTFA divisor of 40 to obtain the taxable monthly base

Report this amount for each month of use on Line 2 of the CDTFA report

and then pay the sales tax due equal to the sales tax rate at your main office

EZ

Simple

Compliance

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