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
330.3073 Vehicles Registered in Name of Lessee Only. The tax liability of a lease may not be measured by rental receipts if the vehicle is registered only in the name of the lessee. This type of registration misrepresents the ownership of the vehicle, and allows for a sale of the vehicle to the lessee without the necessity of changing the registration and alerting DMV to the possible use tax liability related to the transfer. In such a case, the tax is due on the selling price of the vehicle to the lessor. If the lessor is also a licensed dealer, the tax is measured by the cost of the vehicle to the dealer/lessor. However, Regulation 1610(d) allows for the correction of an erroneous lessee registration. If the registration is corrected, the rental receipts method may be continued. 10/21/93.