Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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S

505.0000 SALES TO THE UNITED STATES AND ITS INSTRUMEN-TALITIES—Regulation 1614

Annotation 505.0330

(a) IN GENERAL—AGENCIES QUALIFYING FOR SALES TAX EXEMPTION

505.0330 Resolution Trust Corporation (RTC). RTC when acting in the role of a conservator, is regarded as an incorporated agency or instrumentality of the United States, and sales to the RTC, including leases, are exempt from California sales and use tax. However, tangible personal property purchased from an incorporated agency or instrumentality, such as the RTC, is subject to use tax. If the property is purchased for use in California, use tax must be collected by RTC. The RTC was created to replace FSLIC as receiver for failed thrifts. The context and language of its cretion, to act in the place of FSLIC, makes it clear that RTC shall be treated the same as the FDIC and FSLIC (12 U.S.C. section 1421 et seq.).

When acting as a receiver, the RTC is immune from all state and local taxation. State and local taxing authorities may only tax the RTC if it consents to such taxation, by waiver of the immunity. Congress has expressly waived this immunity for state and local ad valorem real property taxes. 4/16/91; 1/22/92; 2/1/93.