Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
150.0000 BUILDINGS AND OTHER PROPERTY AFFIXED TO REALTY—Regulation 1596
150.0552 Sale of a Gasoline Service Station. The assets of a gasoline service station being sold consist of underground storage tanks, pumps and canopies. The pumps are mounted to a concrete "island" and the canopies are mounted to vertical pipes which are imbedded in the earth. Tax applies as follows:
If the seller owns both the land and the pumps, tanks and canopies, the sale of the tanks and canopies is not taxable unless the contract provides that the seller will sever these items. With respect to the pumps, if the contract provides that the pumps are to be removed by either the seller or the purchaser, the gross receipts from the sale of the pumps are taxable. Otherwise, the sale of the pumps is not taxable.
A different rule applies to the pumps if the seller is leasing the land. Since pumps are trade fixtures under section 1019 of the Civil Code, which gives the seller-lessee the right to remove the pumps, the sale of the pumps under these circumstances is taxable. 7/24/91.