Per the California DMV, vehicles which have been registered as Planned Non-Operation (PNO) do not require a smog check when they are being sold. The reason being, the vehicle does not pose an emissions problem or air quality concern since it is not being driven on public roadways. The vehicle will need a smog check when you or the new owner decide to remove the PNO status.
If you choose to keep the vehicle while it is non-op'ed, you will need to park it on private property only. It will receive an expired/no registration citation, and may even be towed if either parked or driven on a public street, highway, freeway, or roadway.
