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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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V


580.0000 Vehicles

Annotation 580.0020

(a) Generally


580.0020 "Breaking In." The breaking in of foreign cars by a dealer driving them for 500 miles for no other purpose, does not require payment of tax upon the sale to dealer. Such breaking in of the car is nothing more than preparation of the car for delivery to the customer and is not sufficient in itself to subject the dealer to payment of use tax on the theory that the car was used prior to reselling it. 9/5/50.