Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2018

Property Tax Annotations

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Annotation 205.0200

205.0200 Property Held for Lease. When an equipment lease is terminated either because of the lessee's default or the expiration of the lease period, the equipment is eligible for the exemption even though it is located on the lessee's premises, assuming all exemption requirements are met. The statute does not require that the property be located at the lessor's place of business, only that it be held for lease in the regular course of business.

Should the assessor receive late notice of the lease termination after assessing the equipment to the lessor and the lessee, statutory provisions concerning roll correction and/or cancellation should be implemented. Lease provisions concerning the tax responsibilities of the lessee are not binding on the assessor whose assessment authority is contained in Revenue and Taxation Code section 405. C 3/20/1989.