Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
335.0000 LEASES OF MOBILE TRANSPORTATION EQUIPMENT— Regulation 1661
335.0082 Trailer Manufacturer. A trailer manufacturer plans to lease its manufactured trailer to a California customer. The manufacturer may pay tax measured by the purchase price of the raw materials and tax would not apply to the lease receipts. The trailer is mobile transportation equipment. Since the lease will not qualify as a sale or purchase, the manufacturer will be regarded as the consumer of the raw materials incorporated into the trailer. 5/7/76.