Do you pay use tax on a gifted vehicle in ca?

In the U.S. state of California, when a vehicle is gifted to someone, the person receiving the gift (ie, the donee) is typically responsible for paying use tax on the vehicle. The use tax is based on the purchase price of the vehicle, and the tax rate varies depending on the county where the vehicle will be registered.

To calculate the use tax, the donee will need to obtain the purchase price of the vehicle from the donor or from the vehicle's registration documents. The donee will then need to multiply the purchase price by the applicable use tax rate. For example, if the purchase price of the vehicle is $10,000, and the use tax rate in the county is 7.25%, the use tax would be $725 ($10,000 x .0725).

The donee is typically required to pay the use tax to the California Department of Motor Vehicles (DMV) when they register the vehicle. The DMV may also require the donee to provide proof that the use tax has been paid, such as a receipt from the DMV or a use tax form that has been certified by the DMV.