Vehicle & Occupational Licensing Industry News Memos – click here to view the DMV’s complete memo database.
Important 2023 Update) New Online Access Modules:
Apply for a new license
Renew or modify an active license
Pay fees associated with a license or application
Create Your Portal:
DMV Help Page:
Future Dealers, Pre-Licensing Students, Current Applicants:
♦ 8/30/2022) Revised Occupational Licensing (OL) Forms
OL forms have been revised and will be available in electronic format through the Digital Experience Platform (DXP) DMV Documentation
♦ 2022 Update) Starting February 28th, 2022 Scheduling Inspections will now be done online
Release 1 will affect all license and program types that require a site inspection prior to issuing an original license or program certification. New applicants will be required to create a DMV account and schedule their site inspection using a new online portal. DMV Documentation
♦ Auto Broker Endorsement – now an add on for Retail licenses only.
♦ Form OL 902 – this form is no longer required in your application packet.
Currently Licensed Dealers:
“Effective October 8, 2023, the sales and use tax exemption for sales or purchases of certain new, used and remanufactured trucks, and new or remanufactured trailers and semi‑trailers used out‑of‑state or in interstate or foreign commerce, was expanded to include sales and purchases of certain used trailers and semi‑trailers.1 In addition, the sunset date for the exemption was extended to January 1, 2029.”
♦ 11/28/2023) Sales & Use Tax Enhancements ; DMV Documentation
♦ 11/14/2023) 2024 Miscellaneous Fee Increases – Registration and CHP ; DMV Documentation
♦ 6/30/2023) Business Hours / By Appointment Only
Per this memo [https://www.dmv.ca.gov/portal/file/23olin08-pdf/] the DMV has now stated “Operating business “by appointment only” does not comply with the requirement of occupying an established place of business continuously or at regular periods. Regulation compliance requires an authorized person(s) to be available to the public at the dealer location during regular business hours.”
We are currently working with the DMV on behalf of dealers for clarification on this requirement.
♦ Revised REG 343 Form; DMV Documentation
♦ New 2023 FTC Privacy Disclosure Rules
As stated by the FTC (Federal Trade Commission), the 2023 Safeguards Rules apply to auto dealers who:
● Extend credit to someone (for example, through a retail installment contract) in connection with the purchase of a car for personal, family, or household use;
● Arrange for someone to finance or lease a car for personal, family, or household use; or
● Provide financial advice or counseling to individuals.
If you engage in these activities, any personal information that you collect to provide these services is covered by the Privacy Rule. Examples of personal information include someone’s name, address, phone number, or other information that could be used to identify them individually. The Privacy Rule applies if you collect personal information about someone in connection with the potential financing or leasing of a car, even if that person does not fill out a formal application. The Privacy Rule does not apply to you if a person buys a car with cash or arranges financing on their own through another lender.
For more information on the application of the Safeguards to auto dealers, please see FAQ FTC’s Privacy Rule and Auto Dealers.
If you want additional information on the Gramm-Leach-Bliley Act/FTC Safeguards Rules, please use the following links:
“Compliance deadline for certain revised FTC Safeguards Rule provisions extended to June 2023”
“FTC Safeguards Rule: What Your Business Needs to Know”
♦ 2/2023) New Sales and Use Tax Rates Effective April 1, 2023
CDTFA special notice: “To find the specific tax rate for your area or business location on our website, go to Find a Sales and Use Tax Rate. The new rates will be displayed on April 1, 2023. If you have questions about this notice, please call our Customer Service Center at 1‑800‑400‑7115.”
Additional resource: California City & County Sales & Use Tax Rates
♦ 1/2022) New Policy: TOPs will not be issued to extend the operational period of a report of sale (ROS) and/or temporary license plates (TLP) beyond the 90-day period allowed by statute DMV Documentation
When a vehicle is purchased through a dealer, the dealer is required to submit an electronic ROS to the Department of Motor Vehicles (DMV) within five days after the date of sale.
Dealers must then submit a corresponding application to DMV with all fees due:
• For used vehicles, within 30 days of the date of sale.
• For new vehicles, within 20 days of the date of sale.
♦ 1/2022) Miscellaneous Fee Increases DMV Documentation
Including but not limited to an increase in Registration fees from $61 to $62, full list of increased fees detailed on documentation linked above.
& County Fee Changes DMV Documentation
Orange County (county code [CC] 30), Contra Costa County (CC 07) and Riverside County (CC 33)
♦ 9/17/2021) Consumer Motor Vehicle Recovery Fund DMV Documentation
“Beginning October 1, 2021, the Department of Motor Vehicles (DMV) will resume collection of a $1 fee for each vehicle sold by a dealer or lessor-retailer. ”
♦ 1/1/2021) Sales Tax due to DMV at time of transfer DMV Documentation
Effective January 1, 2021, vehicle dealers licensed to sell used vehicles are required to remit to the Department of Motor Vehicles (DMV) any sales tax due on the sale of a vehicle at the time the dealer submits the vehicle transfer/registration application to DMV.
Dealers will no longer send sales tax to the Department of Tax & Fee Administration (CDTFA).
“Based on proposed regulations, DMV will implement the new sales tax payment method requirement in phases. On January 1, 2021, the requirement will be imposed on used vehicle dealers who:
• Were licensed by DMV in the last 2 years.
• Had a finding of underreporting by the California Department of Tax and Fee
Administration (CDTFA) in the last 2 years.
• Reinstated their seller’s permit in the last 2 years.
• Are not in the Business Partner Automation Program.
NOTE: By January 1, 2023, all used vehicle dealers licensed to sell used vehicles will be subject to the new requirement.”
* Don’t pay sales tax to the DMV until they have notified you that your payment method has changed. If DMV has not notified you, continue to pay sales tax to CDTFA. If you are unsure of your status – to verify whether you are required to pay sales tax to the DMV (or to confirm receipt of tax payment to DMV) email DMVTAXINQ@dmv.ca.gov *
January 1, 2023 update from DMV; Used motor vehicle dealers not previously phased in, with 300 or fewer retail vehicle sales in the previous calendar year, should now be phased in.
New legislation authorizes used vehicle dealers that are not currently paying sales tax to DMV and had more than 300 retail vehicle sales in the prior calendar year, to delay changing their tax payment method until January 1, 2026.
♦ 3/19/20) Online Vehicle Sales and Off Site Delivery DMV Documentation
Due to the COVID-19 outbreak, a Proclamation of a State of Emergency was issued by California Governor Gavin Newsom. On March 19, 2020, Executive Order N-33-20 was issued which exempted from the stay at home order “essential critical infrastructure workers” needed to maintain continuity of essential critical infrastructure designated by the State Public Health Officer. On April 28, 2020, in accordance with the Order, the State Public Health Officer designated workers critical to the manufacturing, distribution and sales of vehicles as essential critical infrastructure workers, subject to adhering to the public health guidelines issued by the California Department of Public Health (CDPH). This memorandum clarifies the requirements for online vehicles sales and off-site delivery of a vehicle to a purchaser during this outbreak period.
♦ 12/30/19) 2020 Miscellaneous Fee Increases DMV Documentation
Effective January 1, 2020, two occupational licensing-related fees will increase. These fees affect occupational licensees with identification license plates such as dealers, manufacturers, dismantlers, distributors, remanufacturers, and vehicle transporters.
-The cost to buy a dealer plate is $87.00 per plate. The current dealer license application form says “$71.00” That is incorrect. It is $87.00.
-The “registration fee” (to keep your dealer plate active) increased by $2.00 and is now $59.00.
♦ 11/22/19) Revised Report of Sale Forms DMV Documentation
♦ Changes in vehicle registration fees for 2020 DMV Documentation
♦ Temporary License Plates (TLP) Problems:
Some dealers have been improperly attaching TLP’s to vehicles. This is causing the TLP to swing around, making them difficult to read, and causing them to tear and fall off. Other dealers have been using incorrect TLP paper, causing additional TLP failures. These situations have resulted in lost revenue from bridge tolls, as well as traffic citations for the new owners of the vehicles.
Solution 1: Proper TLP paper material must be used. It can be obtained from one of the authorized TLP providers. Below is the list of DMV approved providers:
Fairfax Imaging: fairfaxsoftware.com
American Driving Records: caevrreg.com
Automated Vehicle Registration Services: avrs.com/temptags
Motor Vehicle Software: dmvdesk.com
Solution 2: TLP must be securely attached to the vehicle. To be securely attached, DMV requires dealers to attach the TLPs to the vehicle using all four perforations in the corners of the TLP paper. If a vehicle does not have four points of attachment, then the dealer must attach the TLPs in a manner that will prevent the TLP from swinging and flapping.
♦ 1/1/2019) Assembly Bill 516
Effective 1/1/2019 ; requires dealers to prepare Reports of Sales electronically (on line) and to print Temporary License Plates when vehicles are sold.
DMV will not longer accept the hard copies of the Reports of Sale issued by DMV to dealer prior to 2019.
DMV will also not allow dealer promotional paper plates to be placed on vehicles at the time of sale. Instead, the new Temporary License Plates must be placed on the vehicle. The processing of the Reports of Sale electronically, and the printing of the Temporary License Plates can be done either through the Business Partner Automation Program, or through Fairfax Imaging. Both procedures are described below:
Business Partner Automation Program
Dealers can process their vehicle licensing and registration paperwork electronically using DMV’s Business Partner Automation Program. When using a Business Partner Automation Program dealers will complete the entire transaction online, but will still need to send hard copies of the old title to the DMV. This can be done at the moment of sale, avoiding most paperwork, missed time deadlines, and storage of old documents. The following are the four DMV-approved Business Partner providers:
DEALERTRACK Contact: Chris Triana – Phone: 860-235-4725 (you can also request a demo on their website)
MOTOR VEHICLE SOFTWARE CORPORATION Contact: Eddy Partida – Phone: 818-706-1949
AUTOMATED VEHICLE REGISTRATION SERVICES Contact: Mark Kithcart – Phone: 707-790-8504
AMERICAN DRIVING RECORDS Contact: Scott Faulds – Phone: 916-288-6616
Fairfax Imaging has been approved by DMV to implement the electronic Report of Sale and Temporary License Plate processes for dealers who are not part of the BPA program discussed above. When using Fairfax, the ROS will be automatically uploaded, then dealers will have 30 days to print out and physically mail ALL the transfer documents into DMV.
Fairfax describes their process as follows: “The Report of Sale will be printed at the end of each transaction. The registration procedures that dealers currently follow will not change. With this system, dealers will print out the Report of Sale forms using a local computer and printer and process registration of vehicles sold in the same manner as currently processed, by utilizing a First Line Business Provider, through DMV Industry Business Centers (IBCs), a registration service or by mail to the department.”
This means that instead of DMV providing dealers with hard copies of Report of Sale Forms, dealers will print their own using the Fairfax system. With this system DMV will have the Report of Sale information as soon as the dealer puts inputs it into the Fairfax system. The dealer can then print out the completed Report of Sale, and will still have up to 30 days to send the hard copy application to DMV as they have in the past. Fairfax will also provide dealers the capability to print Temporary License Plates (“TLP”). These paper plates will have the Report or Sale numbers printed on the plates, so the plates match up to the Reports of Sale. The thinking is that these temporary plates will make the vehicles less desirable objects for theft. Fairfax calls their system “Quick Tags.”
Fairfax conducts training sessions in person or online, and can be contacted at: fairfaximaging.com
Making A Sale With Fairfax:
Using Fairfax, submit your Report of Sale electronically as soon as the sale is made.
Then – print and submit to the DMV:
Report of Sale / Title / REG 262 (bill of sale) from your dealership to the new owner
A check to cover the:
Transfer fee of $15.00 / the vehicle license fee (.65% of the selling price) / the registration fee if it has expired, or will expire within 30 days of the sale date. You can get the fee, if due, from the DMV’s registration calculator on their website.