California SB1406 amends sales and use tax laws to address shell companies evading taxes on vehicles, vessels, and aircraft.

California SB1406 modifies the Sales and Use Tax Law to ensure shell companies are taxed appropriately on vehicles, vessels, and aircraft. It establishes a presumption that such property is acquired for use in California if brought in within 12 months of purchase. This presumption can be rebutted with evidence showing the property was intended for use outside the state. The bill also holds officers, managers, partners, beneficial owners, or members of shell companies personally liable for unpaid taxes if the property is used in California within 12 months of purchase.

California SB1406 amends sales and use tax laws to address shell companies evading taxes on vehicles, vessels, and aircraft.

California SB1406 modifies the Sales and Use Tax Law to ensure shell companies are taxed appropriately on vehicles, vessels, and aircraft. It establishes a presumption that such property is acquired for use in California if brought in within 12 months of purchase. This presumption can be rebutted with evidence showing the property was intended for use outside the state. The bill also holds officers, managers, partners, beneficial owners, or members of shell companies personally liable for unpaid taxes if the property is used in California within 12 months of purchase.