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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.3770

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

Annotation 330.3770

(c) Continuing Sale and Purchase

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330.3770 Tax Paid to Other States. Leases of "passenger vehicles" as defined in Vehicle Code section 465, on which neither sales nor use tax has been paid, are continuing sales and purchases for any period of time that the leased property is in this state, and use tax must be collected by the lessor from the lessee on the rental payments. If the property is removed from the state, the rentals are no longer taxable. Upon the subsequent return of the property to this state, the rentals again become taxable. If, in the interim period, another state has asserted use tax on the use of the same vehicle within its boundaries, the section 6406 credit for tax paid to another state cannot be allowed. Also, section 6406 requires that the other state's tax be paid prior to the use of the property in this state. 2/17/93.