When a vehicle is sold that had a fee exemption by the prior owner of record, such as Annual Exempt Disabled Veteran (DV) or Nonresident Military (NRM), the DMV will collect the fees necessary to register the vehicle with a new sticker year or in the case of NRM, retroactively collect the Vehicle License Fee (VLF). Typically paid by the dealership at the dealership’s expense, there are ways to prevent these fees and instead appropriately charge the buyer. Here are some helpful tips when reviewing a Vehicle Registration Inquiry Report (KSR) to determine if those conditions apply:

• Annual Exempt Disabled Veteran — “DV” (Disabled Veteran) will be part of the license plate number in most cases and there will be a note for the exemption in the Record Condition of the report that displays “ANNUAL EXEMPT DISABLED VETERAN.” Additionally, when a DV exemption applies, the registration expiration date will be set to the last day of the calendar year (e.g.,12/31/2026). We encourage you to run a DMV Fee Calculator as Used Nonresident to determine fees to provide the best estimate for the new buyer based solely on the purchase price and the zip code of the buyer. The new buyer will receive a new registration period with a new sticker year.
• Nonresident Military (NRM) — The registration period will not change, but the DMV will retroactively collect the Vehicle License Fee (VLF) that was exempted for the previous owner when transferring to a new buyer. You can run a Used Fee Calculator for a Used Transfer to determine the fees.

You can find the DMV Fee Calculators here.

Did you know the California Code of Regulations issued by the DMV includes two provisions specifying how quickly registration paperwork must be received by your First-Line Service Provider (FLSP) (that’s us here at Vitu!) after it has been eFiled?

In sections 225.54(c) and 225.39(a)(12), the regulations state the following:

Non-Compliance:
CCR 225.54(c): Second-line business partners (SLBP) shall submit transaction documents to FLSP's within 7 business days of processing.
CCR 225.39(a)(12): FLSP's shall submit transaction documents to DMV within 20 days of processing. And, if not received from the SLBP, shall not accept nor submit any transactions until received. In addition to FLSP actions, BPA will also temporarily cancel the processing of all BPA items pertaining to the business including, but not limited to, BPA permit renewals, address changes, branch adds, FLSP changes, etc. until compliance is met across the board for all locations under the same OL/company.

Note: The exception to these limitations will be the addition/deletion of BPA approved employees.

As outlined in these regulations, BPA Second-Line Business Partners (that’s you, your dealership!) are required to submit all supporting documentation to Vitu within seven (7) business days of eFiling. Section 225.39 further specifies that if the required paperwork (including Report of Sale (ROS), Title, REG 262, etc.) is not received within this timeframe, the First-Line Service Provider (Vitu) must neither accept nor submit additional registration transactions for that Second-Line Business Partner (your dealership) until the documentation is received.

With the above requirements in mind, ensure any outstanding bundles are submitted promptly to avoid any disruptions in service.

To better understand a Vehicle Registration Inquiry Report (KSR) that has a pending record in the Record Condition section, the DMV has a reference chart available breaking down Report of Deposit of Fees (RDF) reason codes. You can read the full list of RDF codes here on their website.

As a friendly reminder from the Business Partner Program (BPA), second-line business partners (that’s you!) shall maintain all business records related to the BPA program, those required by Vehicle Code section 11406, and all copies of all registration documents submitted by customers, for at least four (4) years. All or part of these records may be kept in electronic format. Records stored in paper format shall be stored solely at the approved site location.

For more information about Section 225.60 Retention of Business Records, please visit the California Regulatory Notice Register 2025, Volume Number 11-Z (page 335 under Title 13 — Department of Motor Vehicles, section 225.60.) 

For further information regarding California Code of Regulation Section §225.60, please visit the link here.

Do you know how many REG 262s, One Trip Permits, Temp Tags, and Emergency ROS books your store has available? Now is a great time to check your supply and order more if needed. It’s always better to be prepared preemptively.

• REG 262s can be ordered for free from the DMV using the instructions here.
• One Trip Permits, Temp Tag Paper, and Emergency ROS books can be ordered from the Tools section of Vitu’s Dashboard tab.

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Confidence, accuracy and the ability to handle every scenario means deals move faster. This Spring, we’re hitting the road to help you brush up on the often complex world of California title and registration. We’ll deliver best-in-class, in-person title and reg and on-site F&I training sessions tailored to meet your specific needs and designed to help your team perform at their very best every day.

Across California, we’re excited to offer you in-person training two ways:

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Our familiar title and reg classes at set locations