California Vehicle Bill of Sale
California's official Bill of Sale is Form REG 135, and use tax is computed on the stated purchase price.
Introduction
A California vehicle bill of sale documents the sale of a car, truck, motorcycle, or vessel between a buyer and a seller. California publishes its own official form, the Bill of Sale (REG 135), available on the DMV website, and a multipurpose form, the REG 262, that doubles as a bill of sale and an odometer disclosure. Using the REG 135 is not mandatory. The DMV accepts any bill of sale that identifies the vehicle or vessel, and the bill of sale itself is optional because the Certificate of Title, signed by the buyer and seller, plus the transfer fee is what actually transfers ownership. The bill of sale earns its place in two ways. First, a bill of sale is not required to be notarized or witnessed, but it must accurately establish the chain of ownership. Second, and most important in California, use tax is computed on the stated purchase price. Each application subject to use tax must show the purchase price on the back of the Certificate of Title or include a bill of sale, so the bill of sale is the price proof for the DMV. You title and register at the California DMV, and the transfer fee is due within 30 days of the transfer to avoid penalty. DocDraft drafts a California vehicle bill of sale from your facts, with attorney review available before you sign.
Key Things to Know
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California has an official form, the Bill of Sale (REG 135), available on the DMV website only and not from the supply warehouse. Using it is optional, because any bill of sale that identifies the vehicle or vessel is acceptable to the DMV.
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A California bill of sale is not required to be notarized or witnessed. It must, however, accurately establish the chain of ownership from seller to buyer.
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Odometer disclosure follows the federal 49 CFR 580 rule. For a transfer on or after January 1, 2021 of a vehicle less than 20 model years old, disclosure is required, made on a complying title or on the REG 262, with original signatures by the seller and buyer (signatures by power of attorney are not accepted).
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Use tax is computed on the stated purchase price, ranging from 7.25% to 10.25% depending on the buyer's city and county. Each application subject to use tax must show the purchase price on the back of the Certificate of Title or include a bill of sale.
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You title and register at the California DMV. The transfer fee is due within 30 days of the transfer to avoid penalty, and the seller must file the Notice of Transfer and Release of Liability within 5 days.
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A bill of sale is optional and supplementary. The Certificate of Title signed by the buyer and seller, plus the transfer fee, is what transfers ownership; a bill of sale is used as needed to establish chain of ownership and to show the purchase price for use tax.
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If the stated purchase price looks low or there is a discrepancy, the buyer must complete a Statement of Facts (REG 256) explaining it, or the DMV will base use tax on the higher amount.
Key decisions before you file
Before you file a Bill of Sale in California, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.
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California Requirements for Bill of Sale
California publishes the Bill of Sale (REG 135), available on the DMV website only and not from the supply warehouse. Using it is optional, because any bill of sale that identifies the vehicle or vessel is acceptable to the DMV. The multipurpose REG 262 doubles as a bill of sale and an odometer disclosure.
A California bill of sale is not required to be notarized or witnessed. It must accurately establish the chain of ownership from seller to buyer. Identify the seller and buyer by name and address so the chain of ownership is clear.
Identify the vehicle or vessel so the bill of sale is acceptable to the DMV. Include the VIN or hull ID, year, make, model, body type, and color. Any bill of sale that identifies the vehicle or vessel is accepted.
For a transfer on or after January 1, 2021 of a vehicle less than 20 model years old, federal 49 CFR 580 requires odometer disclosure, made on a complying title or on the REG 262, with original signatures by the seller and buyer. Signatures by power of attorney are not acceptable for the odometer disclosure.
Use tax is computed on the stated purchase price, ranging from 7.25% to 10.25% by the buyer's city and county. Each application subject to use tax must show the purchase price on the back of the Certificate of Title or include a bill of sale, so the stated price on this document is the price proof for the DMV.
If there is a purchase price discrepancy in the application, the buyer must complete a Statement of Facts (REG 256) explaining it, or the DMV will base use tax on the higher amount. Keep the stated price on the bill of sale consistent with what is shown on the title.
Title and register the vehicle at the California DMV. The Certificate of Title signed by the buyer and seller, plus the transfer fee, is what transfers ownership; the transfer fee is due within 30 days of the transfer to avoid penalty.
The seller must file the Notice of Transfer and Release of Liability with the DMV within 5 days of the sale. This is separate from the buyer's title and registration and protects the seller from liability after the sale.
Frequently Asked Questions
A bill of sale is optional in California. The Certificate of Title, signed by the buyer and seller, plus the transfer fee is what transfers ownership. A bill of sale is used as needed to establish the chain of ownership, and a separate bill of sale is required to register a vehicle where the purchase price must be shown for use tax. The DMV accepts its own Bill of Sale (REG 135) or any bill of sale that identifies the vehicle or vessel.
No. In California a bill of sale is not required to be notarized or witnessed. It must accurately establish the chain of ownership from seller to buyer, but no notary acknowledgment is needed. Odometer disclosure does require original signatures by both the seller and the buyer, and signatures made by power of attorney are not accepted for that disclosure.
Yes. California publishes the Bill of Sale (REG 135), available on the DMV website only and not from the supply warehouse. The DMV also offers the REG 262, a multipurpose form that doubles as a bill of sale and an odometer disclosure. Using the REG 135 is not mandatory, because any bill of sale that identifies the vehicle or vessel is acceptable to the DMV.
California use tax on a vehicle purchase ranges from 7.25% to 10.25% depending on the buyer's city and county, and it is computed on the stated purchase price. Each application subject to use tax must show the purchase price on the back of the Certificate of Title or include a bill of sale. If there is a purchase price discrepancy, the buyer must complete a Statement of Facts (REG 256) explaining it, or use tax will be based on the higher amount.
You title and register a vehicle at the California DMV. The transfer fee is due within 30 days of the transfer to avoid penalty. Separately, the seller must file the Notice of Transfer and Release of Liability with the DMV within 5 days of the sale. To register, the application must show the purchase price on the back of the Certificate of Title or include a bill of sale so the DMV can compute use tax.
A California vehicle bill of sale should identify the vehicle or vessel and establish the chain of ownership. Include the seller and buyer names, the vehicle description with the VIN, year, make, and model, the stated purchase price (which drives use tax), the sale date, and the signatures of both parties. For a transfer on or after January 1, 2021 of a vehicle less than 20 model years old, include the odometer reading with original signatures, or use the REG 262, which combines the bill of sale and odometer disclosure.