California Advises Vehicle Dealers Selling to Out-of-State LLCs

California dealers selling vehicles to out-of-state limited liability companies could face investigations into sales tax compliance if they fail to document the transactions properly, the California Department of Tax and Fee Administration said in a notice Friday.

The department revised forms that dealers and purchasers must complete to relieve them of the duty to collect tax and attest that vehicles are delivered out of state, according to the notice. If they both don’t complete the forms, the transactions will be subject to further investigation.

Under California law, vehicles purchased in California but delivered to customers out of state and ...