Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
335.0000 LEASES OF MOBILE TRANSPORTATION EQUIPMENT— Regulation 1661
335.0083 Trailers. Trailers are mobile transportation equipment under Regulation 1661, and the lessors of such trailers are regarded as consumers. For purposes of the section 6388.5 exemption, the use of the trailers determines whether the exemption applies. Since a lessor consumes the trailer by leasing it, the manner in which the trailer is used by the lessee is regarded as the lessor's use for purposes of section 6388.5. As such, if the trailer is used by the lessee in a manner qualifying for the section 6388.5 exemption, then the consumer of those trailers, i.e. the lessor, obtains the benefit of the exemption. 1/21/92.