AB 893, as introduced, Daly. Sales and use taxes: lease: definition.
The Sales and Use Tax Law defines a “lease” for purposes of application of that law.
This bill would make technical, nonsubstantive changes to that definition.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6006.3 of the Revenue and Taxation
2Code is amended to read:
“Lease” includes rental, hire and license. “Lease” does
4not include a use of tangible personal property forbegin delete a period ofend delete less
5than one day for a charge of less than twenty dollars ($20) when
6the privilege to use the property is restricted tobegin insert itsend insert usebegin delete thereofend delete on
7the premises or at a business location of the grantor of the privilege.
8begin delete Whereend deletebegin insert Ifend insert a contract
designated as a lease binds the lessee for a
9fixed term and the lessee is to obtain title at the end of the term
10upon the completion of the required paymentbegin insert,end insert or has the option at
11that time to purchase the property for a nominal amount, the
P2 1contract shall be regarded as a sale under a security agreement
2from its inception and not as a lease.begin delete In the case ofend deletebegin insert Forend insert a contract
3designated as a lease with any state or local governmental body,
4or any agency or instrumentality thereof, the lessee shall be treated
5as bound for a fixed term notwithstanding any right of the lessee
6to terminate the contract in the event that sufficient funds are not
7appropriated to pay amounts due under the
contract.
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