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Business Taxes Law Guide—Revision 2024

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 3.5. Vehicles, Vessels, and Aircraft *

Article 2. Special Exemptions

Section 6281


6281. Substantially same ownership after transfer. There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, a mobilehome or commercial coach required to be annually registered under the Health and Safety Code, or a vehicle required to be registered under the Vehicle Code or subject to identification under Division 16.5 (commencing with Section 38000) of the Vehicle Code, or a vessel or aircraft, when such property is included in any transfer of all or substantially all the property held or used in the course of business activities of the person selling the property and when after such transfer the real or ultimate ownership of such property is substantially similar to that which existed before such transfer. For the purposes of this section, stockholders, bondholders, partners, or other persons holding an interest in a corporation or other entity are regarded as having the "real or ultimate ownership" of the property of that corporation or other entity.

History—Stats. 1969, p. 999, in effect November 10, 1969, substituted "business activities" for "a business activity". Stats. 1971, p. 3923, in effect December 23, 1971, operative July 1, 1972 added, "or subject to identification under Division 16.5 (commencing with section 38000) of the Vehicle Code." Stats. 1981, Ch. 975, in effect January 1, 1982, added "a mobilehome … Safety Code, or" before "a vehicle" in the first sentence and substituted "that" for "such" after "property of" in the second sentence.


* Chapter 3.5 was added by Stats. 1965, p. 5443, operative August 1, 1965.