Nope, you're reading it correctly.
The other awesome thing California does is if you don't register/title it in California at time of purchase, you are to physically remove it from the state within 24 hours of purchase until it is registered in whatever other state. If you don't they can fine you/impound the car.
VA isn't much better. My wife registered her 3 year old 4runner here after moving down. Promptly received a property tax bill totaling $1000. Needless to say it was promptly re-registered in FL for a grand total of $75. I sent a nice email letting them know that the vehicle was no longer and would never again be registered in the state of VA and that they could shove their $1000 bill.