PERSONAL USE CIRCUMSTANCES

You must be prepared to make tax adjustments in some situations.

When a dealer purchases a vehicle for resale & holds in it inventory, using the vehicle solely for demonstration and display the purchase is not taxed.

When used for purposes other than demonstration and display, tax is due.

The amount of tax varies by use.

When a dealer assigns such a vehicle to a licensed salesperson, for a period of less than 12 months, a monthly tax based on 1/60 of the purchase price is due.

When a dealer assigns such a vehicle to an employee or officer, for a period of less than 12 months, a monthly tax based on 1/40 of the purchase price is due.

When a dealer assigns such a vehicle to a licensed salesperson, employee or officer for a period beyond 12 months, the purchase price is taxed and a credit is given for any monthly tax previously paid.

When a dealer assigns a vehicle to anyone other than a licensed salesperson, employee or officer for any period of time, the purchase price is taxed.

* Weekend test drives without a letter of authorization are taxed.

When a dealer purchases parts & accessories for vehicles held in inventory, no tax is due, except paint, paint supplies, tools & equipment are taxed.

When a dealer makes a loan of a vehicle in inventory to a customer, awaiting delivery of a purchased vehicle or return of a repaired vehicle, for a period of less than 30 days, the fair market rental value is taxed, as long as display & demonstration precedes and follows such use.

If the loan is made and these conditions are not met, the purchase price is taxed.

When a dealer make a loan of a vehicle in inventory to a driver training program the use of the vehicle in this situation is exempt from tax.