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
330.2650 Possession and Control Requirement. If possession and control of the property in question are not transferred to the purported lessee, and the purported lessee does not have the option of obtaining the property without also obtaining the services of the lessor (or the lessor's employee or agent) who maintains possession and control of the property, then the transaction is not a lease. Rather, the purported lessor is actually using the property. Entremont v. Whitsell (1939) 13 Cal.2d 290. For example, if a photographer "leases" his camera but insists upon taking the pictures himself, refusing to transfer possession and control of the camera to the "lessee," then the "lessor" is not regarded as leasing the camera, and would not be entitled to purchase that camera for resale. 6/29/92. (Am. M99–1).