Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
(a) IN GENERAL
330.2308 Lease of Sign Affixed to Realty. A sign leased by the manufacturer that is attached to a building wall or roof, is a fixture. As such, tax applies to the rental receipts pursuant to section 6016.3, if the lessor has the right to remove the sign upon breach or termination of the lease, unless the sign lessor is also the lessor of the realty to which the sign is attached.
On the other hand, a sign firmly attached to realty, such as, a pole sign embedded in concrete in the ground, will be treated as a lease of real property. In this case, tax would apply to the contract to construct the structure (sign and pole) in accordance with Regulation 1521. As such, tax would apply to the cost of materials used to fabricate the sign itself, in addition to the cost of materials used to erect the sign pole. 7/2/93.