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
330.2320 Licenses. A "license" allowing a licensee to use, in California, software which provides that the software must be returned to the out-of-state licensor at the termination of the license period, is a lease. The lessor has nexus with the state of California due to the presence of the software, and is required to collect use tax on the lease.
Seller making an outright retail sale of software is not required to collect use tax if the seller has no other contact with California other than through mail order sales of products delivered by carrier or the U.S. Postal Service. 7/8/93.