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 7 - Specific Kinds of Property and Exemptions Generally › Section 1596 - Buildings and Other Property Affixed to Realty

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Buildings and Minerals. The transfer of
				  buildings or minerals or the like affixed to land is taxable as a sale of
				  personal property if, pursuant to the contract or agreement of sale, the
				  buildings or minerals or the like are to be severed by the seller thereof. If,
				  pursuant to the contract or agreement of sale, such buildings or minerals or
				  the like are to be severed by the purchaser thereof, such a transfer is not
				  taxable as a sale of personal property.
The gross receipts from the sale of or the storage, use, or
					 other consumption in this state of any used mobilehome the initial retail sale
					 of which qualified for the 60 percent exclusion provided for by Revenue and
					 Taxation Code Section
					 6012.8
					 for the period January 1, 1980 to June 30, 1980, inclusive, is exempt from the
					 sales and use tax.
Operative July 1, 1980, the gross receipts from the sale
					 of, and the storage, use, or other consumption in this state of any used
					 mobilehome subject to local property taxation is exempt from the sales and use
					 tax.
The exemptions for sales of used mobilehomes does not
					 extend to accessories or other items as defined in Regulation 1610(b)(3)(B)(1)
					 that are not an integral part of the mobilehome at the time of
					 sale.
(b) Timber. The
				  transfer of timber to be severed is taxable as a sale of personal property,
				  regardless of whether the timber is to be severed by the seller or by the
				  purchaser thereof.
(c) Fixtures,
				  Machinery and Equipment, and Draperies Affixed to Real Property. The transfer
				  "in place" of affixed fixtures, machinery and equipment, or draperies is
				  taxable as a sale of personal property when removal of the fixtures, machinery
				  or equipment, or draperies by the seller or purchaser is contemplated by the
				  contract of sale. The transfer "in place" of affixed fixtures, machinery and
				  equipment, or draperies owned by a lessee of land or buildings to which those
				  items are affixed, is also taxable as a sale of personal property when the
				  lessee-seller has the present right to remove the items either as trade
				  fixtures under Section
				  1019 of the
				  Civil Code or under the express terms of the lease.
The measure of tax with respect to the sale of fixtures,
					 machinery and equipment, or draperies does not include any value attributable
					 to their attachment to real property, even though such value might be included
					 in the agreed price. In the absence of evidence requiring a different method of
					 computation, when the agreed price includes the value attributable to the
					 attachment of the items, the measure of tax will be determined by applying to
					 the agreed price that percentage which the original cost of the property bears
					 to the total of that cost and the cost of attachment, i.e., cost of items/cost
					 of items + cost of attachment x agreed price = measure of tax.
NOTE: Leased property affixed to realty as tangible
					 personal property when lessor has right to remove, see regulation
					 2060.
1. New
					 section filed 2-20-70; effective thirtieth day thereafter (Register 70, No.
					 8).
2. Amendment of subsection (c) filed 5-30-75; effective
					 thirtieth day thereafter (Register 75, No. 22).
3. Amendment of
					 subsection (c) filed 8-8-78; effective thirtieth day thereafter (Register 78,
					 No. 32).
4. Amendment of subsection (a) filed 8-22-80 as an
					 emergency; effective upon filing (Register 80, No. 34). A Certificate of
					 Compliance must be transmitted to OAL within 120 days or emergency language
					 will be repealed on 12-22-80.
5. Certificate of Compliance including
					 amendment of subsection (a) transmitted to OAL 12-19-80 and filed 1-16-81
					 (Register 81, No. 3).
Note: Authority cited: Section
						7051,
						Revenue and Taxation Code. Reference Sections
						6006,
						6010,
						6012.2,
						6012.8 6012.9, 6016, 6016.3, 6276,
						6276.1 and 6379, Revenue and Taxation
						Code.