Laws, Regulations and Annotations


Business Taxes Law Guide – Revision 2024

Sales And Use Tax Regulations

Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes (State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 4. Sales and Use Tax

Article 17. Payment and Collection of Use Tax

Regulation 1686

Regulation 1686. Receipts for Tax Paid to Retailers.

Reference: Section 6202, Revenue and Taxation Code.

(a) In General. Each retailer required to collect use tax from purchasers (including lessees) must give a receipt to each purchaser (or lessee) for the amount of the tax collected. The receipt need not be in any particular form but must show the following:

(1) The name and place of business of the retailer.

(2) The serial number of the retailer's permit to engage in business as a seller or the retailer's Certificate of Registration—Use Tax.

(3) The name and address of the purchaser or lessee.

(4) A description identifying the property sold to the purchaser or leased to the lessee.

(5) The date on which the property was sold or leased.

(6) The sale price of the property, or, in the case of rentals, the amount of the rental for the period covered by the invoice.

(7) The amount of tax collected from the purchaser or lessee.

For sales transactions, and rental transactions with respect to which use tax applies, an invoice showing the data required above, together with evidence of payment of such invoice, will constitute a receipt.

(b) Notice to Lessee. For lease or rental transactions with respect to which use tax does not apply, the inapplicability of the tax must be indicated by a statement on the invoice that the tax does not apply for one of the following reasons:

(1) The property leased is of a kind (specify) the lease of which is excluded from the definition of "sale" and "purchase" by Sections 6006(g) and 6010(e), respectively, of the Sales and Use Tax Law.

(2) The property is being leased in substantially the same form as acquired by the lessor (or transferor) and the lessor (or transferor) acquired the property in a transaction that was a retail sale with respect to which the retailer reported and paid sales tax or as to which the lessor (or transferor) has paid use tax measured by the purchase price of the property.

(3) The property was acquired by the lessor in an exempt "occasional sale" and the lessor has paid, or elects to pay and will pay with his return for the period in which the property is first leased, use tax measured by the purchase price of the property in lieu of his rental charges.

(4) The amount of the rental payments is fixed by lease (or renewal thereof) prior to August 1, 1965, and the lessee does not have the unconditional right to terminate the lease upon notice.

History—Adopted August 7, 1957, as a restatement of previous ruling, effective September 11, 1957.

Amended and renumbered November 3, 1969, effective December 5, 1969.

Amended December 7, 1978, effective February 18, 1979. Amends subsection
(b)(2) which pertains to sales tax reimbursement and notice to lessees.