Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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L

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

Annotation 330.2720

(a) IN GENERAL

330.2720 Resale Certificates—Lease Contracts. Lessors may issue resale certificates to their suppliers and pay tax on rental receipts if they so desire, rather than paying sales tax reimbursement to their vendors or paying use tax on the purchase price of the property. This is unchanged by the amendments effective August 1, 1965. When property is acquired from a nonretailer, e.g., as a trade-in, the tax being inapplicable to the acquisition of the property because acquired from a nonretailer, subsequent rentals of the property are taxable. 8/3/65. (Section 6094.1, added by Statutes of 1966 but operative July 1, 1965, provides an election to the purchaser of property acquired in an occasional sale from a nonretailer to pay tax measured by his purchase price and avoid tax on his rental receipts.)