Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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L

330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660

Annotation 330.2580

(a) IN GENERAL

330.2580 Personal Computers. A taxpayer is in the business of renting personal computers to the public for use within its store at $10.00 each hour. Either the taxpayer or the customer provides the software. Also, a laser printer is provided to produce a finished copy at an additional price for each print.

Lease excludes a use of a property for a period of less than one day for a charge of less than $20.00 when the use is restricted to the grantor's premises. (Revenue and Taxation Code section 6006.3). The lessor is the consumer of the personal computer and laser printer, and tax applies to the sale of the items to him. If the charge exceeds $20.00 per day, the transaction is a lease; however, if the equipment is purchased tax paid and leased in substantially the same form as acquired, the lease is not subject to tax. 1/3/90.