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
#realcardealerschool
800-901-5950
