2005 California Revenue and Taxation Code Sections 6241-6249 Article 3. Presumptions and Resale Certificates

6241.  For the purpose of the proper administration of this part and
to prevent evasion of the use tax and the duty to collect the use
tax, it shall be presumed that tangible personal property sold by any
person for delivery in this State is sold for storage, use, or other
consumption in this State until the contrary is established.  The
burden of proving the contrary is upon the person who makes the sale
unless he takes from the purchaser a certificate to the effect that
the property is purchased for resale.
6242.  The certificate relieves the person selling the property from
the duty of collecting the use tax only if taken in good faith from
a person who is engaged in the business of selling tangible personal
property and who holds the permit provided for by Article 2
(commencing with Section 6066) of Chapter 2 of this part.
6243.  The certificate shall be signed by and bear the name and
address of the purchaser, shall indicate the number of the permit
issued to the purchaser, and shall indicate the general character of
the tangible personal property sold by the purchaser in the regular
course of business.  The certificate shall be substantially in such
form as the board may prescribe.
6243.1.  Notwithstanding any other provision of law, any person,
other than a person exempt from payment of use tax in accordance with
Section 6352, who leases mobile transportation equipment and who
cannot otherwise properly issue a resale certificate may issue such a
certificate for the limited purpose of reporting his use tax
liability based on fair rental value as provided in subdivision (d)
of Section 6094 and subdivision (d) of Section 6244.
   With respect to matters arising out of mergers or acquisitions,
the provisions of this section shall apply to any matters pending
before the board on the effective date of this section.
6244.  (a) If a purchaser who gives a resale certificate or
purchases property for the purpose of reselling it makes any storage
or use of the property other than retention, demonstration, or
display while holding it for sale in the regular course of business,
the storage or use is taxable as of the time the property is first so
stored or used.
   (b) If such use is limited to the loan of the property to
customers as an accommodation while awaiting delivery of property
purchased or leased from the lender or while property is being
repaired for customers by the lender, the measure of the tax is the
fair rental value of the property for the duration of each loan so
made.
   (c) If the property is used frequently for purposes of
demonstration or display while holding it for sale in the regular
course of business and is used partly for other purposes, the measure
of the tax is the fair rental value of the property for the period
of such other use or uses.
   (d) If the property is mobile transportation equipment as defined
in Section 6023, and the use is limited to leasing the equipment, the
purchaser may elect to pay his use tax measured by the fair rental
value, if the election is made on or before the due date of a return
for the period in which the equipment is first leased.  The election
must be made by reporting tax measured by the fair rental value on
the return for that period, or in such other manner as the board may
prescribe.  Tax must thereafter be paid with the return for each
reporting period, measured by the fair rental value, whether the
equipment is within or without the state.  The election may not be
revoked with respect to the equipment as to which it is made.
   (e) As used in subdivision (d), the term "fair rental value" means
the rentals required by the purchaser under the lease except where
the board determines that such rentals are nominal.  The term shall
not include any reimbursement payments made by the lessee to the
purchaser for such use tax.
6244.5.  (a) Notwithstanding any other provision of law, a lessor of
tangible personal property described in Section 17053.49 or 23649,
who is the manufacturer of that property and who leases that property
to a qualified taxpayer, as defined in Sections 17053.49 and 23649,
in a form that is not substantially the same form as acquired, may,
in lieu of reporting use tax measured by the rentals payable, elect
to pay tax measured by his or her cost price of that property if the
election is made on or before the due date of the return for the
period in which the property is first leased.  The election shall be
made by reporting use tax measured by the cost price on the return
for that period.  The election shall not be revoked with respect to
the property as to which it is made.  The lease of that property for
which an election is made pursuant to this section shall thereafter
be excluded from the terms "sale" and "purchase."
   (b) "Cost price," as used in subdivision (a), means the price at
which similar property has been previously sold or offered for sale.
If that property has not been previously sold or offered for sale,
then the cost price shall be deemed to be the aggregate of the
following:
   (1) Cost of materials.
   (2) Direct labor.
   (3) The pro rata share of all overhead costs attributable to the
manufacture of the property.
   (4) Reasonable profit from the manufacturing operations which, in
the absence of evidence to the contrary, shall be deemed to be 5
percent of the sum of the factors listed in paragraphs (1) to (3),
inclusive.
6245.  If a purchaser gives a certificate with respect to the
purchase of fungible goods, or purchases those goods for resale in
the regular course of business, and thereafter commingles these goods
with other fungible goods not so purchased but of such similarity
that the identity of the constituent goods in the commingled mass can
not be determined, sales from the mass of commingled goods shall be
deemed to be sales of the goods so purchased until a quantity of
commingled goods equal to the quantity of purchased goods so
commingled has been sold.  Goods removed from the commingled mass for
consumption shall be deemed to be consumption of goods not so
purchased until a quantity of commingled goods equal to the quantity
of goods not so purchased has been consumed.
6245.5.  (a) A person qualified under subdivision (b) may issue a
certificate to a retailer with respect to the amount of manufacturers'
or importers' excise tax imposed pursuant to Section 4081 or 4091 of
the Internal Revenue Code for purposes of subparagraph (B) of
paragraph (4) of subdivision (c) of Section 6011 or subparagraph (B)
of paragraph (4) of subdivision (c) of Section 6012 when purchasing
fuel from the retailer.
   (b) A person is qualified for purposes of this section if all of
the following conditions are met:
   (1) The person was entitled to either a direct refund or credit
against his or her income tax for the manufacturers' or importers'
excise tax imposed pursuant to Section 4081 or 4091 of the Internal
Revenue Code for more than 50 percent of the person's purchases of
fuel during the prior calendar year.
   (2) The person's business remains substantially the same as during
the prior calendar year whereby the person expects to be entitled to
either a direct refund or credit against his or her income tax for
the manufacturers' or importers' excise tax imposed pursuant to
Section 4081 or 4091 of the Internal Revenue Code for more than 50
percent of the person's purchases of fuel.
   (3) The person holds a valid California seller's permit.
   (c) A person issuing a certificate for purposes of subparagraph
(B) of paragraph (4) of subdivision (c) of Section 6011 or
subparagraph (B) of paragraph (4) of subdivision (c) of Section 6012
is liable for use tax on the amount of the manufacturers' or
importers' excise tax imposed pursuant to Section 4081 or 4091 of the
Internal Revenue Code if the person used fuel purchased under the
certificate in a manner whereby the person is not entitled to a
direct refund or credit against his or her income tax of the federal
excise tax.
   (d) A person liable for the use tax under subdivision (c) of this
section shall report and pay that use tax with the return for the
reporting period in which the person uses the fuel in such a manner
that the person is not entitled to a direct refund or credit against
his or her income tax of the federal excise tax.
6246.  It shall be further presumed that tangible personal property
shipped or brought to this State by the purchaser was purchased from
a retailer on or after July 1, 1935, for storage, use, or other
consumption in this State.
6247.  On and after the effective date of this section, it shall be
further presumed that tangible personal property delivered outside
this State to a purchaser known by the retailer to be a resident of
this State was purchased from a retailer for storage, use or other
consumption in this State and stored, used or otherwise consumed in
this State.
   This presumption may be controverted by a statement in writing,
signed by the purchaser or his authorized representative, and
retained by the vendor, that the property was purchased for use at a
designated point or points outside this State.  This presumption may
also be controverted by other evidence satisfactory to the board that
the property was not purchased for storage, use, or other
consumption in this State.
6248.  (a) On and after the effective date of this section there
shall be a rebuttable presumption that any vehicle, vessel, or
aircraft bought outside of this state, and which is brought into
California within 12 months from the date of its purchase, was
acquired for storage, use, or other consumption in this state and is
subject to use tax if any of the following occur:
   (1) The vehicle, vessel, or aircraft was purchased by a California
resident as defined in Section 516 of the Vehicle Code.
   (2) In the case of a vehicle, the vehicle was subject to
registration under Chapter 1 (commencing with Section 4000) of
Division 3 of the VehicleCode during the first 12 months of
ownership.
   (3) In the case of a vessel or aircraft, that vessel or aircraft
was subject to property tax in this state during the first 12 months
of ownership.
   (4) The vehicle, vessel, or aircraft is used or stored in this
state more than one-half of the time during the first 12 months of
ownership.
   (b) This presumption may be controverted by documentary evidence
that the vehicle, vessel, or aircraft was purchased for use outside
of this state during the first 12 months of ownership.  This evidence
may include, but is not limited to, evidence of registration of that
vehicle, vessel, or aircraft, with the proper authority, outside of
this state.
   (c) This section does not apply to any vehicle, vessel, or
aircraft used in interstate or foreign commerce pursuant to
regulations prescribed by the board.
   (d) The amendments made to this section by the act adding this
subdivision do not apply to any vehicle, vessel, or aircraft that is
either purchased, or is the subject of a binding purchase contract
that is entered into, on or before the operative date of this
subdivision.
   (e) (1) Notwithstanding subdivision (a), aircraft or vessels
brought into this state for the purpose of repair, retrofit, or
modification shall not be deemed to be acquired for storage, use, or
other consumption in this state.
   (2) This subdivision does not apply if, during the period
following the time the aircraft or vessel is brought into this state
and ending when the repair, retrofit, or modification of the aircraft
or vessel is complete, more than 25 hours of airtime in the case of
an airplane or 25 hours of sailing time in the case of a vessel are
logged on the aircraft or vessel by the registered owner of that
aircraft or vessel or by an authorized agent operating the aircraft
or vessel on behalf of the registered owner of the aircraft or
vessel.  The calculation of airtime or sailing time logged on the
aircraft or vessel does not include airtime or sailing time following
the completion of the repair, retrofit, or modification of the
aircraft or vessel that is logged for the sole purpose of returning
or delivering the aircraft or vessel to a point outside of this
state.
   (3) This subdivision applies to aircraft or vessels brought into
this state for the purpose of repair, retrofit, or modification on or
after the operative date of this subdivision.
   (f) The amendments made by the act adding this subdivision shall
become operative on October 1, 2004.
   (g) The Legislative Analyst's office shall conduct a study of the
economic impacts of the amendments made to this section by the act
adding this subdivision, and shall report its findings to the
Legislature on or before June 30, 2006.
   (h) This section shall remain in effect only until July 1, 2006,
and as of that date is repealed.
6248.  (a) On and after July 1, 2006, there shall be a rebuttable
presumption that any vehicle bought outside of this State which is
brought into California within 90 days from the date of its purchase,
and which is subject to registration under Chapter 1 (commencing
with Section 4000) of Division 3 of the Vehicle Code, was acquired
for storage, use, or other consumption in this State.
   (b) This section shall become operative on July 1, 2006.
6249.  A member of the armed services on active duty who purchases a
vehicle prior to the effective date of his discharge shall not be
subject to the presumption established by Section 6248.  He shall not
be deemed to have purchased the vehicle for storage, use or other
consumption in this State unless at the time of purchase he intended
to use it in this State, such intent resulting from his own
determination, rather than from official orders received as a member
of the armed services transferring him to this State.