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
330.2958 Tax Paid on Less than Full Sales Price. A person purchases property outside the state from a retailer who is authorized to collect California use tax. The buyer intends to lease the property in California. Through an error by the seller in interpreting the application of tax to fabrication labor, use tax was paid to the seller upon approximately 90% of the taxable charge. Because it was clear that the buyer intended to buy the property tax-paid for the purpose of leasing it ex-tax and because the amount of tax actually paid closely approximates the amount due, the property should be regarded as tax-paid for purposes of leasing. The buyer remains liable for the difference between the amount of tax paid and the amount of tax due. 4/14/81.