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
330.3071 Use by Lessor in California After Out-of-State Lease. A lessor leases tangible personal property to an out-of-state lessee. The property was not purchased tax-paid by the lessor. After termination of the lease, the lessor brings the property back to California for utilization in the lessor's own operations in California.
If the property was not within the state prior to the out-of-state lease and did not enter the state within 90 days of the start of the out-of-state lease, the subsequent use of the property in this state by the lessor is not subject to tax. If the property was in the lessor's inventory in California prior to the out-of-state lease and did not re-enter California until more than six months from the start of the lease, the subsequent use of the property in this state by the lessor is also not subject to tax pursuant to section 6009.1. If neither of these conditions is applicable, the subsequent use in this state is subject to tax. 3/17/80.