Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
460.0000 FULL CASH VALUE
460.0010 Equipment Leased To Federal Instrumentalities. The legal incidence of sales tax upon equipment leased to federal instrumentalities is upon such instrumentalities and therefore, violates the government's immunity from state taxation (United States v. California State Board of Equalization, 650 F.2d 1127, and California State Board of Equalization v. United States, 456 U.S. 901). Thus, sales tax is not a part of the normal replacement cost of equipment leased to a federal instrumentality, and the fair market value of such equipment should not include a component for sales tax. LTA 10/1/1982 (No. 82/112).