Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.1878

Sales and Use Tax Annotations

A    B    C    D    E    F    G    H    I    J    L    M    N    O    P    R    S    T    U    V    W    X   

---

L

---

330.0000 Leases of Tangible Personal Property—In General—Regulation 1660

Annotation 330.1878

(a) In General

---

330.1878 Assignments. In sales and use tax matters, the language used by the parties to characterize their transaction does not in itself necessarily control. Therefore, despite the language of assignment contracts, a taxable sale occurred if other evidence indicated that title in fact passed from transferor to transferee. Such other evidence would include the following factors:

(1) Whether transferor or the transferee retained title in the property after the payments to the transferee were completed;

(2) Whether the parties filed financing statements under the Uniform Commercial Code;

(3) Whether the parties treated the transaction as a sale or a loan for income tax purposes, and, more specifically, whether the transferor or the transferee claimed depreciation, investment tax credit, or similar deductions predicated upon ownership of the property; and

(4) Whether the putative interest rate, if the transaction were treated as a loan, would be usurious under California law. 1/16/87.