Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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475.0000 RESALE CERTIFICATES—Regulation 1668

Annotation 475.0037

475.0037 Essential Elements of Resale Certificate. An out-of-state retailer sold equipment to a California consumer. Three and a half months later, a leasing company notified the out-of-state retailer that it had purchased the equipment that the out-of-state retailer had sold to the California consumer as part of a leaseback transaction. The leasing company issued an exemption certificate which stated the property was purchased from the out-of-state retailer "exclusively for the purpose of leasing."

The exemption certificate is not a valid resale certificate because it was not issued by the party who purchased the equipment. Further, the certificate was not issued timely and did not indicate that the property was purchased for resale. 9/29/88.