New California Dealer Intro & Questions

[Dylan Leff]

Hey all! I'm a newly licensed retail dealer in CA. I'm currently selling 1-3 cars per month, and most have gone out of state. However I just sold one to another CA resident and I've been trying to find answers to some paperwork/procedural questions without any luck.

1. If I sell a car to another CA resident, how and where do I pay the sales tax that I collected from the customer? I called CA DMV and they could not give me an answer. I have found various PDFs from the DMV and CDTFA websites with conflicting info. Can this be done online?

2. What do I do with the old title? What parts of it need to be filled out? Does it get mailed to DMV? Can't find a single reference to this process in any of my training material or in the CA DMV Dealer Handbook.

Any help or resources would be greatly appreciated.

 

[Tallcool1]

California IADA California IADA ::

www.iadac.org

Get ahold of these people right here.

Good Luck and welcome!

Clint

 

[Marcus.Wilson97]

Hey Dylan, you can use one of the providers for a DMS and for sales docs, it'll make it much easier to operate your business, also have you considered any provider for an all in one solution for your dealership online ? If not let me know I can def hook you up with some companies that can grant you a promo

 

[garagebirds]

Late reply, but this thread still turns up when people search, so here's what the official sources say. Disclosure: I'm the founder of GARAGEBIRDS (dealer software). None of this is legal or tax advice; the agencies have the final word.

1. Sales tax. Under SB 1496, used dealers below a sales-volume threshold pay the sales tax on the vehicle price to DMV, with that car's registration application. CDTFA sends you a notice if this applies to you (their special notice L-870 explains it). You still file your CDTFA sales and use tax return and include every retail car sale, including the ones where the tax went to DMV. Taxable charges that DMV doesn't collect on, like doc fees and smog certification fees, are reported and paid on that CDTFA return.

2. The old title. Within 30 days of the sale, the application copy of the Report of Sale (REG 51) goes to DMV with the fees and the documents needed to transfer the car, and that's where the title goes. The dealer's notice copy of the REG 51 has a shorter deadline: 5 calendar days after the sale. DMV's Vehicle Industry Registration Procedures Manual (chapter 8 for the Report of Sale, section 11.040 for dealer transfers) shows exactly what to sign.

CDTFA's customer service line is 1-800-400-7115, and CalIADA (iadac.org), as Clint said, is worth joining. We keep a list of the California dealer forms with links to DMV's own copies here: California Dealer Paperwork: DMV Forms for Used-Car Sales