California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 15 - Leases of Tangible Personal Property › Section 1661 - Leases of Mobile Transportation Equipment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Definitions.
(1) "Mobile Transportation Equipment". The
				  term "mobile transportation equipment" includes only equipment for use in
				  transporting persons or property for substantial distances, such as railroad
				  cars and locomotives, buses, trucks (except "one-way rental trucks"), truck
				  tractors, truck trailers, dollies, bogies, chassis, reusable cargo shipping
				  containers, aircraft and ships, and tangible personal property which is or
				  becomes a component part of such equipment. The term does not include items of
				  a kind commonly used only in loading or unloading persons or property, or short
				  distance moving within the confines of a limited area, such as a loading dock,
				  warehouse, terminal, bay or airport. Examples of such items are hand dollies,
				  forklift trucks, mine cars, pilot boats, tugboats and lighters, not including,
				  however, lighters or barges specifically designed to be carried regularly
				  aboard vessels for substantial distances. The term does include pickup trucks
				  and tangible personal property which is or becomes a component part of mobile
				  transportation equipment.
The following items are specifically excluded from the
					 definition of mobile transportation equipment:
(A) Passenger vehicles as defined in section
				  465 of the
				  California Vehicle Code;
(B)
				  Trailers and baggage containers designed for hauling by passenger vehicles;
				  and
(C) One-way rental trucks.
				  These vehicles are motor trucks of a kind required to be registered under the
				  Vehicle Code, not exceeding the manufacturer's gross vehicle weight rating of
				  24,000 pounds, which are principally employed by a person in the rental
				  business in being leased out for short-term periods of not more than thirty-one
				  (31) days to individual customers for one-way or local hauling of personal
				  property of the customers, and which upon acquisition or being employed in this
				  state by the person, are identified to the board by reporting tax measured by
				  rental receipts on a timely return for the first reporting period in which the
				  truck is leased and maintaining records which can be verified by audit of the
				  vehicles as to which such an election has been made.
Upon the leasing of such a truck to a customer, the lessor
					 shall make known to the customer the fact that the vehicle is designated as a
					 one-way rental truck and any taxes which are imposed are measured by the
					 rentals. Once a truck is identified to the board as a one-way rental truck, the
					 election may not be revoked with respect to the equipment as to which it is
					 made. However, failure of the lessor to make such a timely election will cause
					 such vehicles to be classified as mobile transportation
					 equipment.