Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Uniform Local Sales and Use Tax Annotations
710.0000 PLACE OF SALE FOR PURPOSES OF BRADLEY-BURNS UNIFORM LOCAL SALES AND USE TAXES—Regulation 1802
710.0004 Place of Sale—Lease of Vehicle. A lessor, whose home office is located out of state, negotiated a lease of a vehicle to a California customer from its home office. The vehicle was purchased directly from an automobile manufacturer at an out-of-state factory. Once the vehicle was manufactured, it was delivered to a dealer in California where the customer picked it up. The lessor, however, took title to the vehicle at the factory. The customer made lease payments at the lessor's home office.
Since the lessor is not a California new car dealer, and the car was purchased at an out-of-state factory where it took title, subdivision (a)(2) of section 7205.1 applies. The California dealer did not acquire title and the car was never a part of its resale inventory. Here, the transaction was completed out of state. The dealer basically provided temporary parking for the car coming into California. Thus, the lessor should report the local use tax to the county wide pool of lessee's residence. 2/9/96.