Publication 61, Sales and Use Taxes: Tax Expenditures Fiscal Year 2023–24
Other Tax Expenditures
Occasional Sales
Generally, a sale by or a purchase from a person who makes fewer than three sales in any period of 12 months (occasional sale) and is not required to hold a seller’s permit is not subject to sales and use tax.
Sales for Resale
The sale of tangible personal property purchased for subsequent sale in the regular course of business, and property purchased that will become a component part of such property, is not subject to tax provided the purchaser makes no use of it prior to its resale.
Vehicles Sold to Family
The sale and use of vehicles, vessels, and aircraft are exempt from tax when sold by the parent, grandparent, child, grandchild, spouse or registered domestic partner, or the brother or sister if the sale is between two minors, provided that the seller is not engaged in the business of selling that type of property.
United States
Sales and leases to the United States or its incorporated agencies and instrumentalities, any incorporated agency or instrumentality wholly owned by the United States or by a corporation wholly owned by the United States, and sales to the American National Red Cross are exempt from sales tax.
Delivery to Export Packers
Sales of property purchased for use solely outside this state are exempt from sales tax if the property is delivered to a forwarding agent, export packer, or other person engaged in the business of preparing goods for exportation, and the goods are delivered to a port outside the continental limits of the United States prior to any use.
Interstate and Foreign Commerce
Sales of property which, according to the contract of sale, are shipped by the retailer to a point outside this state are exempt from tax. Generally, no exemption applies if the property is delivered to the purchaser or purchaser’s representative in this state, even if the purchaser subsequently removes the property from this state.
Purchases From United States
The use of property purchased by a consumer from the United States, or any agency or instrumentality thereof, is exempt from use tax except when property has been declared “surplus property’’ according to the Surplus Property Act of 1944.
Purchases in Foreign Countries
The first 800 dollars ($800) of the purchase price of tangible property purchased in a foreign country by an individual and personally hand carried into this state from the foreign country within any 30-day period is exempt from the use tax.
Credit for Tax Paid to Other States
A credit is allowed as an offset against a person’s liability for California use tax on tangible personal property sales or use taxes, or reimbursement therefore, imposed on that property and paid by that person to any other state, political subdivision thereof, or the District of Columbia prior to the use in California.
Revision December 2025