Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 1. General Provisions and Definitions

Section 6016

6016. "Tangible personal property." "Tangible personal property" means personal property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses.

Sale of sand and gravel.—Where a supplier agreed to furnish sand and gravel to a highway contractor "f.o.b. jobsite" from its own pit, it was a sale of tangible personal property and not a transfer of interest in real property. Santa Clara Sand and Gravel Co. v. State Board of Equalization (1964) 225 Cal.App.2d 676.

Sale of equipment agreed by the parties to be personal property.—Equipment was tangible personal property where the parties agreed and intended that such equipment attached to real property would remain personal property with rights to removal, replacement and consumption. Standard Oil Co. v. State Board of Equalization (1965) 232 Cal.App.2d 91.

Transfer of Master Film Negatives.—Film negatives and master recordings used to make audiovisual materials for training medical personnel, which were transferred by plaintiff as part of a sale of the segment of its business devoted to producing and marketing such materials, were tangible personal property. Simplicity Pattern Co. Inc. v. State Board of Equalization (1980) 27 Cal.3d 900.

Printing of lottery tickets.—Sales of printed lottery tickets to the California Lottery Commission were subject to tax. The exemption of lottery tickets from state and local taxes, pursuant to Government Code 8880.68 applies to sales of lottery tickets to the public after the Lottery Commission has authorized the use of the tickets in lottery games. City of Gilroy v. State Board of Equalization (1989) 212 Cal.App.3d 589.

Sale of coal for electricity production.—The purchases of coal were not exempt from the use tax under Revenue and Taxation Code sections 6007 and 6008, as property purchased for resale in the regular course of business because the coal was not incorporated into a final product within the meaning of Sales and Use Tax Regulation 1525. Rather, the coal functioned as a catalyst in the manufacturing process. Searles Valley Minerals Operations Incorporated v. State Board of Equalization (2008) 160 Cal.App.4th 514.