Certain dealers licensed to sell used vehicles face changes in the way they pay sales taxes beginning January 1, 2021. New legislation, Assembly Bills 82 and 85 requires sellers of used vehicles to pay to the Department of Motor Vehicles (DMV) sales tax at the same time they submit the vehicle registration/transfer application.
Dealers submitting sales tax to DMV are still required to file returns with the California Department of Tax and Fee Administration (CDTFA) and will be able to take a credit for the sales tax paid directly to the DMV.
DMV Sales Tax Information Page
800-901-5950
