Revenue and Taxation Code section 6248
(a)
There shall be a rebuttable presumption that any vehicle, vessel, or aircraft bought outside of this state on or after the effective date of this section, and which is brought into California within 12 months from the date of its purchase, was acquired for storage, use, or other consumption in this state and is subject to use tax if any of the following occurs:(1)
The vehicle, vessel, or aircraft was purchased by a resident of California, as defined in Section 516 of the Vehicle Code.(A)
For purposes of this section, a closely held corporation, partnership, limited partnership, limited liability partnership, or limited liability company shall also be considered a California resident if 50 percent or more of the shares, partnership interests, limited partnership interests, limited liability partnership interests, or limited liability company membership interests are held by shareholders, partners, or members who are residents of California, as defined in Section 516 of the Vehicle Code.(B)
Notwithstanding subparagraph (A), a shell company shall be deemed to be a California resident if any shareholder, partner, member, or beneficial owner is a resident of California, as defined in Section 516 of the Vehicle Code.(C)
For purposes of this section, “shell company” means a closely held corporation, partnership, limited partnership, limited liability partnership, or limited liability company used for the purpose of evading the payment of taxes due under this part. Evidence that an entity is a shell company used for the purpose of evading the tax includes, but is not limited to, any of the following:(i)
It lacks a specific business activity or purpose.(ii)
It fails to maintain a physical location outside California.(iv)
It fails to file federal tax returns or fails to file a required state tax return in a state other than California.(2)
In the case of a vehicle, the vehicle was subject to registration under Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code during the first 12 months of ownership.(3)
In the case of a vessel or aircraft, that vessel or aircraft was subject to property tax in this state during the first 12 months of ownership.(4)
If purchased by a nonresident of California, the vehicle, vessel, or aircraft is used or stored in this state more than one-half of the time during the first 12 months of ownership.(b)
This presumption may be controverted by documentary evidence that the vehicle, vessel, or aircraft was purchased for use outside of this state during the first 12 months of ownership. This evidence may include, but is not limited to, evidence of registration of that vehicle, vessel, or aircraft, with the proper authority, outside of this state.(c)
This section shall not apply to any vehicle, vessel, or aircraft used in interstate or foreign commerce pursuant to regulations prescribed by the department.(d)
The amendments made to this section by the act adding this subdivision shall not apply to any vehicle, vessel, or aircraft that is either purchased, or is the subject of a binding purchase contract that is entered into, on or before the operative date of this subdivision.(e)
Notwithstanding subdivision (a), any aircraft or vessel brought into this state exclusively for the purpose of repair, retrofit, or modification shall not be deemed to be acquired for storage, use, or other consumption in this state if the repair, retrofit, or modification is, in the case of a vessel, performed by a repair facility that holds an appropriate permit issued by the department and is licensed to do business by the city, county, or city and county in which it is located if the city, county, or city and county so requires, or, in the case of an aircraft, performed by a repair station certified by the Federal Aviation Administration or a manufacturer’s maintenance facility.(f)
The presumption set forth in subdivision (a) may be controverted by documentary evidence that the vehicle was brought into this state for the exclusive purpose of warranty or repair service and was used or stored in this state for that purpose for 30 days or less. The 30-day period begins when the vehicle enters this state, includes any time of travel to and from the warranty or repair facility, and ends when the vehicle is returned to a point outside the state. The documentary evidence shall include a work order stating the dates that the vehicle is in the possession of the warranty or repair facility and a statement by the owner of the vehicle specifying dates of travel to and from the warranty or repair facility.
Source:
Section 6248, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=6248. (updated Sep. 30, 2026; accessed Oct. 5, 2026).
