California Revenue and Taxation Code 6010.65 – (a) “Sale” and “purchase,” for purposes of this part, do not …
(a) “Sale” and “purchase,” for purposes of this part, do not include any transfer of title to, nor any lease of, tangible personal property pursuant to an acquisition sale and leaseback. An acquisition sale and leaseback is a sale by a person and leaseback to that person of tangible personal property where both of the following conditions are satisfied:
(1) That person has paid sales tax reimbursement or use tax with respect to that person’s purchase of the property.
Terms Used In California Revenue and Taxation Code 6010.65
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes any person, firm, partnership, general partner of a partnership, limited liability company, registered limited liability partnership, foreign limited liability partnership, association, corporation, company, syndicate, estate, trust, business trust, or organization of any kind. See California Revenue and Taxation Code 19
- Personal property: All property that is not real property.
(2) The acquisition sale and leaseback is consummated within 90 days of that person’s first functional use of the property.
(b) “Sale” and “purchase” include, for purposes of this part, the transfer of title to a lessee upon termination of an acquisition sale and leaseback.
(c) This section shall apply to acquisition sale and leaseback arrangements executed on or after the operative date of this section.
(Amended by Stats. 1994, Ch. 286, Sec. 1. Effective July 21, 1994.)