Recent Rule & Regulation Changes

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DMV News

Attention Future Dealers, Pre-Licensing Students, Current Applicants:

Auto Broker Endorsement – now an add on for Retail licenses only.

Form OL 902 – this form is no longer required in your application packet.

Attention Currently Licensed Dealers:

1/1/2021) Sales Tax due to DMV at time of transfer

“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). DMV Documentation

3/19/20) Online Vehicle Sales and Off Site Delivery 

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. DMV Documentation

12/30/19) 2020 Miscellaneous Fee Increases

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.  DMV Documentation

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:
American Driving Records:
Automated Vehicle Registration Services:
Motor Vehicle Software: 

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

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:

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.

Your buyer will receive the “operating copy” of the Report of Sale, which you will attach to the lower right hand corner of the windshield (it is like a temporary registration until they get their official title and registration from DMV). The operating copy is is the small form that is attached to the Report of Sale. Remove it from the Report of Sale main form at tape it to the windshield.