Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
135.0000 BANKS AND INSURANCE COMPANIES—Regulation 1567
135.0221 Leases of Personal Property. Banks are authorized to purchase tangible personal property under resale certificates which they will lease to customers under a lease providing that the property remains tangible personal property even though it may be affixed to real property.
(Note: Effective December 16, 1971, the term "tangible personal property" as defined by Revenue and Taxation Code section 6016.3 includes only leased "fixtures" as to which the lessor has the specified right of removal. Property which constitutes "materials" under Regulation 1521, such as wall-to-wall carpeting, is not classified as tangible personal property even where the lessor has the right of removal upon breach or termination of the lease. Accordingly, banks may not issue resale certificates for materials. Persons who furnish and install materials are consumers of the materials, and tax applies to the sale of the property to them.) 1/23/76.