Laws, Regulations & Annotations


Business Taxes Law Guide – Revision 2021

Sales And Use Tax Law


Section 6010.65

6010.65. "Sale" and "purchase"; acquisition sale and leaseback.

(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.

(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.

History—Added by Stats. 1990, Ch. 558, in effect January 1, 1991. Stats. 1994, Ch. 286, in effect July 21, 1994, but operative January 1, 1995, deleted "and before January 1, 1995" after "section" in subdivision (c) and deleted former subdivision (d) which would have repealed the section effective January 1, 1995.