Which of the following is a common exemption from California use tax?

In California, common exemptions from use tax often pertain to vehicles that are brought into the state by new residents, provided they were purchased more than 12 months prior to their relocation. This exemption is based on the premise that the vehicle was already subject to sales tax in another jurisdiction, so taxing it again upon entry into California would be considered double taxation.

When someone purchases a vehicle and later moves to California, the state recognizes that they have already contributed to the tax system in their previous state and generally allows them to avoid paying additional taxes on that vehicle if they meet the 12-month requirement. This helps ease the transition for new residents and supports fairness in the taxation process for individuals relocating to California.

In contrast, other options may not qualify for the same exemption due to various regulations regarding sales tax and residency status. For instance, vehicles sold to out-of-state buyers may not be used in California at all, while business exemptions often have specific requirements and documentation that can complicate tax obligations. Therefore, the unique condition surrounding vehicles brought into California by new residents captures the rationale for this exemption.