Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
295.0000 GROSS RECEIPTS
295.0721 Telephone Conferencing Equipment. A firm has conferencing equipment located outside of California. Some courts in California require lawyers to appear telephonically. As a result, the firm has installed equipment for use by the judge in California in order that the judge may better hear and communicate with all participants without holding a phone receiver. Assuming there is no charge to the courts for the equipment installed in courtrooms, there is no taxable sale by the firm. However, it appears that the firm has use tax liability with respect to such equipment. There is no fee to the court. Rather, the only fee is charged to the lawyers. The charge to the lawyers is not taxable since there is no sale of tangible personal property. 5/16/97.