Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales And Use Tax Court Decisions
Hotel Del Coronado v. State Board of Equalization . . . (1971)
Plaintiff sold its entire interest in the assets, fixtures, and property of a hotel it operated. Sales tax was assessed, measured by the sales price of the tangible personal property, including hotel furniture and fixtures transferred as part of the sale. Plaintiff operated a hotel, restaurant, bar, and smoke shop and had made numerous "salvage sales" of property of the type disposed of in the final sale. Plaintiff contended that the sale of its capital assets qualified as an "occasional sale" within the meaning of Section 6006.5(a) of the Revenue and Taxation Code and was thus exempt under Section 6367.
The court of appeal held that the tax had been properly assessed. Plaintiff was engaged in the activity of making numerous sales at retail and was, therefore, required to hold a seller's permit. The property sold was held in an activity which required the holding of such a permit. Further, since the capital assets sold during the months prior to the sale in question were of the same type as those sold in the questioned sale, that sale was one of a series of sales sufficient in number, scope, and character to require the holding of a seller's permit. Hotel Del Coronado v. State Board of Equalization (1971) 15 Cal.App.3d 612.