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Business Taxes Law Guide—Revision 2024
Transactions and Use Tax Annotations
800.0000 Application of Transactions (Sales) Tax and Use Tax—Regulation 1823
Annotation 800.0920
800.0920 Rental Equipment. Equipment is purchased in California and sales tax reimbursement is paid on cost at the time of purchase. It is first leased, in substantially the same form as acquired, in a county which does not have a district tax. Soon after the equipment is moved to Nevada and leased there for a period of 90 days. Later, the property is returned to California and leased in another county which imposes a district tax.
Under these circumstances, no district use tax is due, since the equipment was leased outside the district imposing the tax for more than 90 days. However, if the property was returned to California within the 90 day period after the date of purchase and was leased in a county which has a district tax, then the district use tax would be due. 8/23/89