Vehicles: registration and transfers of title or interest: use tax.

Existing law requires the Department of Motor Vehicles to withhold the registration or the transfer of registration of any vehicle or vessel, and to withhold identification or transfer of ownership of any off-highway vehicle subject to identification, until the applicant for registration or identification pays to the department the use tax measured by the sales price of the vehicle or vessel as required by the Sales and Use Tax Law, together with penalty, except as specified. Existing law requires the department to transmit all collections of use tax and penalty to the State Board of Equalization. This bill would require, in addition, that the department determine all local use taxes the applicant is responsible to pay by specific address data provided by the applicant, and where the vehicle or vessel is to be registered. The bill would require the department to transmit the tax area codes and the amount of local use tax and penalty collections attributable to those tax area codes to the board. This bill would require the board to allocate the use taxes transmitted by the department to the jurisdiction where the purchaser registers the purchased vehicle or vessel by the tax area code data provided to the board by the department. This bill would declare the intent of the Legislature that the department and the board administer the provisions relating to registration of vehicles and vessels and identification of off-highway vehicles for these purposes in a manner that ensures that applicable local sales taxes and local transaction and use taxes are collected and then remitted to the specific jurisdiction where the vehicle or vessel is registered.