Do the exemptions apply to leases in the same manner as they do to sales and purchases?
Leases of qualifying tangible personal property that are classified as “continuing sales” and “continuing purchases” of tangible personal property in accordance with Regulation 1660, Leases of Tangible Personal Property – In General, may qualify for the exemptions (partial or otherwise) provided if the requirements of the applicable exemption (partial or otherwise) are met. If the lease is a continuing sale and purchase, as described in Regulation 1660, and the person and property meet the specified requirements, rentals payable made on or after the effective date of the type of exemption, should qualify for the applicable exemption. • I am a lessor of equipment. I currently pay tax on the purchase price of the equipment before I place it into rental inventory. Consequently, I do not remit or collect tax on the lease payments. Will these types of leases qualify for the partial exemption? No. The exemptions (partial or otherwise) are not available to lessors who elect to pay California
