Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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R

490.0000 RETURNS, DEFECTS AND REPLACEMENTS—Regulation 1655

Annotation 490.0460

(b) REPLACEMENTS GENERALLY—MAINTENANCE CONTRACTS

490.0460 Lemon Law—Auto Leases. Although an auto manufacturer is required by the California Lemon Law to repurchase defective vehicles sold or leased to consumers, it is not entitled to refunds of use tax paid back to lessees on such repurchases. Civil Code section 1793.25 was added to the Lemon Law to require the Board to reimburse the manufacturer for sales tax which was included in making restitution to a consumer under the Lemon Law, if the dealer had paid the sales tax on the original retail sale of the subject vehicle. This section pertains only to refunds of sales tax, precluding the granting of refunds of use tax. However, a lessee may obtain a refund of use tax if he received a credit on rentals in accordance with Regulation 1655. The provisions of Regulation 1655 are applicable to leases which are "continuing sales." 7/31/90.