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
330.2318 Licensing of CD-ROM and Related Software. An out-of-state corporation compiles data regarding proprietary oil and gas production information and places it on a CD-ROM. Copies of the CD-ROM and related software are furnished to licensees. The corporation retains rights to the data and the CD-ROM. The data is updated monthly by returning the original CD-ROM and receiving an updated one.
Since the customer must return the CD-ROM, the transaction is a lease. The corporation leases property in California that is not leased in the same form as acquired and is, therefore, a retailer engaged in business in this state. It is required to collect use tax from its California customers even though it does all of its business by mail order. 8/4/94.