October 8, 2018 MA AUTO SERVICES 2445 Q STREET RIO LINDA, CA 95673 Buyer # 503406 Sales Tax Refund Opportunity As you may be aware, in September 2012 the State of California enacted a law to restrict the ‘acoeptance of resale certificates by auctioneers. The Califoria Board of Equalization issued a notice stating that an auctioneer that sells vehicles, motorhomes, commercial coaches, or salvage vehicles may only accept a resale certificate from auto dealers, automotive repair dealers, dismantlers, and scrap metal processors. While this change created a presumption of taxability for sales to other classes of vehicle purchaser, those sales may still be exempt from California sales tax for other reasons, including if the vehicle was in fact purchased for resale, was shipped outside of California, or if use tax was paid. We have reason to believe that sales tax may have been charged in error on many of your vehicle purchases from Copart’s California yards during the period after the law changed. We would like to assist you in obtaining a refund of that sales tax from the State of California by offering evidence that your purchases were in fact not subject to tax. The enclosed form summarizes the different categories that may apply to your vehicle purchases when determining whether California sales tax is due. We have included a list of your purchases from our California yards in the spreadsheet attached to the form. Please review the form and then check one box on the spreadsheet for each vehicle to indicate the appropriate category for that purchase transaction. Please return the completed form, with signature, and the spreadsheet(s) to us by email to renew.dept@copart.com no later than October 19, 2018. I you have been recently audited by the State of Califomia, please contact us as this issue may have been resolved during your audit. Should we be successful in showing the State of California that Copart's sales to you qualified as a sale for resale or that one of the other non-taxable transaction categories applies, the sales tax that was charged on your transactions will be refunded to you. Please contact our tax department at renew.dept@copart.com if you have any questions. Thank you, Reiate Ragone Kristi Rogers Tax DirectorSTATEMENT FOR PURPOSES OF SALES TAX REFUND DETERMINATION, Please complete and retum this form within 10 days by email lo renew. dept@copart.com. RaW Ree ROARED ETERS RET _ Copan. Inc. 028-906246 For each vehicle listed on the attached spreadsheet, please indicate which of the following statements applies by checking the box under the corresponding letter column on the spreadsheet. Only one box should be checked per vehicle. ifnone of these apply. please explain in the comments section below. (A) The property was purchased for resale and was resold in the form of tangible personal property. it was not used for any purpose other than retention, demonstration, or display while being held for sale in the regular course of business. (B) The property was purchased for resale and is presently in resale inventory. Ithas not been used for any other purpose other than retention, demonstration, of display while being held for sale in the regular course of business. (C) The property was purchased for leasing and tax measured by rental receipts has been paid directly to the State of California with our sales and use tax returns. (D) The property was purchased for our own use and not for resale; and (i tax was paid directly to the the State of California with our sales and use tax return(s) for the applicable reporting periog(s). (i tax was added to the billing and remitted to the seller. (ii) the purchase is a taxable transaction and tax is applicable. (E) Immediately following purchase, the property was transported outside the State of California or was transported to port within the State of California and was thereafter exported out of the United States of America, morrae te Puto Sonices— ene — PE = "244s Q of BbLak cn 1567 Moe GR) - IND Com FEC OF REITER MoresVehicles Purchased from Copert ten rcs age fs sve Jv ssvon | a] |e [own] om | oon] Is