Sales and Use Tax Law General Provisions

California Revenue and Taxation Code Division 2, Part 1, Chapter 1 deals with general provisions and definitions for the Sales and Use Taxes law.

Section 6001 defines this part as the “Sales and Use Tax Law.”

Section 6002 requires the definitions given in this chapter to govern the construction of this part.

Section 6003 defines the term “sales tax.”

Section 6004 defines the term “use tax.”

Section 6005 defines the term “person.”

Section 6006 defines the term “sale.”

Section 6006.1 provides that the granting of possession of tangible personal property by a lessor to a lessee, or to another person at the direction of the lessee, is a continuing sale in this state by the lessor.

Section 6006.3 defines the term “lease.”

Section 6006.5 defines the term “occasional sale.”

Section 6006.6 defines the term “sale.”

Section 6007 defines the terms “retail sale,” “sale at retail,” “convicted seller,” “counterfeit mark,” “counterfeit label,” and “illicit label.”

Section 6007.5 provides that a sale of tangible personal property to a contractor or subcontractor for use in the performance of contracts with the United States for the construction of improvements on or to real property in this State is a retail sale.

Section 6008 defines the term “storage.”

Section 6009 defines the term “use.”

Section 6009.1 defines the terms “storage” and “use.”

Section 6009.2 defines the terms “convicted purchaser,” “counterfeit mark,” “counterfeit label,” and “illicit label.”

Section 6010 defines the term “purchase.”

Section 6010.1 provides that the possession of tangible personal property by a lessee, or by another person at the direction of the lessee, is a continuing purchase for use in this state by the lessee.

Section 6010.3 defines the terms “sale” and “purchase.”

Section 6010.4 provides that, if two or more persons engaged in the production and distribution of motion pictures for use in any media form a partnership for the purpose of reducing the cost of producing motion pictures through the sharing of the use of equipment, studio facilities and the services of personnel, the furnishing (without transferring title to tangible personal property) of such equipment, facilities and services by the partnership to its members for the purpose of the production of motion pictures by its members do not constitute either a “sale” or “purchase.”

Section 6010.5 specifies that the place of the sale or purchase of tangible personal property is the place where the property is physically located at the time the act constituting the sale or purchase, as defined in this part, takes place.

Section 6010.6 states that the terms “sale” and “purchase” do not include four specified transactions. The terms “motion picture,” “produce or production of any qualified motion picture,” “qualified motion picture,” “qualified production services,” “transfer,” “rights relating to any qualified motion picture,” and “exploitation.”

Section 6010.65 exclude specified items from the definitions of “sale” and “purchase.”

Section 6010.7 does not apply specified provisions to the lease of chemical toilet unit.

Section 6010.8 excludes specified items from the definitions of “sale” and “purchase.”

Section 6010.9 excludes specified items from the definitions of “sale” and “purchase” and defines the terms “storage media,” “computer,” “computer program,” and “custom computer program.”

Section 6010.10 excludes specified items from the definitions of “sale” and “purchase,” and defines the term “pollution control facility.”

Section 6010.11 states that “sale” and “purchase” do not include any transfer of a qualified mass commuting vehicle pursuant to a safe harbor lease arrangement described in Section 168(f)(8) of the Internal Revenue Code of 1954, as amended, or pursuant to a sale-leaseback or lease-leaseback arrangement which includes a safe harbor lease arrangement. The term “qualified mass commuting vehicle” is defined.

Section 6010.30 states that “sale” and “purchase” do not include the transfer of original drawings, sketches, illustrations, or paintings by an artist or designer at a social gathering for entertainment purposes, if all of the four specified requirements are met. The term “substantially all” is defined.

Section 6010.40 explains that the terms “sale” and “purchase” do not include the transfer by a city, city and county, county, or other local government animal shelter or a nonprofit animal welfare organization of any animal to an individual for use as a pet, or any charges made by the government shelter or nonprofit organization for services in connection with the transfer of that animal. The term “nonprofit animal welfare organization” is defined.

Section 6010.50 defines the terms “sale” and “purchase” as not including any transfer of an endangered or threatened animal or plant species acquired or disposed of through a trade or exchange between nonprofit zoological societies or between a member of the American Zoo and Aquarium Association (AZA) and a nonprofit zoological society. The terms “endangered or threatened animal or plant species” and “nonprofit zoological society” are defined.

Section 6011 defines the term “sales price” and excludes eleven specified items from this definition.

Section 6011.11 excludes specified items from the definition of “sales price.”

Section 6012 defines the term “gross receipts.”

Section 6012.1 excludes specified items from the definition of “gross receipts.”

Section 6012.2 defines the terms “gross receipts” and “sales price” from the sale of a used mobilehome.

Section 6012.3 excludes specified items from the definitions of “gross receipts” and “sales price.”

Section 6012.6 defines “gross receipts” and “sales price” related to a factory-built school building.

Section 6012.7 defines the terms “gross receipts” for the sale of factory-built housing, and “sales price” for factory-built housing, sold or stored, used, or otherwise consumed in this state. The term “factory-built housing” is defined.

Section 6012.8 defines the terms “gross receipts” and “sales price” related to new mobilehomes.

Section 6012.9 defines the term “gross receipts” forthe sale of a new mobilehome, and the term “sales price” for a new mobilehome sold or stored, used or otherwise consumed in this state.

Section 6014 defines the term “business.”

Section 6014 defines the term “seller.”

Section 6015 defines the term “retailer.”

Section 6016 defines the term “tangible personal property.”

Section 6016.3 includes specified items in the definition of “tangible personal property.”

Section 6016.5 excludes specified items from the definition of “tangible personal property.”

Section 6017 defines the term “in this state.”

Section 6018 provides that a licensed optometrist, physician and surgeon, pharmacist, or registered dispensing optician is a consumer of and not to be considered a retailer within the provisions of this part as specified.

Section 6018.1 specifies that a licensed veterinarian is a consumer of, and not to be considered a retailer within the provisions of this part with respect to, drugs and medicines used or furnished by him or her in the performance of his or her professional services. The term “drugs and medicines” is defined. 

Section 6018.2 allows a qualified veteran to receive from the state a qualified repayment if all provisions of this section are satisfied. The terms “qualified veteran” and “qualified repayment” are defined.

Section 6018.4 states that a licensed chiropractor is a consumer of, and not to be considered a retailer within the provisions of this part with respect to, vitamins, minerals, dietary supplements, and orthotic devices used or furnished by him in the performance of his professional services.

Section 6018.5 says that a licensed podiatrist is a consumer of, and not to be considered a retailer within the provisions of this part with respect to, the prosthetic materials and inlays used or furnished by him in the performance of his professional services in the diagnosis, treatment, or correction of conditions of the human foot, including the adaptation of arch supports or special footgear for the aid thereof.

Section 6018.6 explains that any person who received no more than 20 percent of his or her total gross receipts from the alteration of garments during the preceding calendar year is a consumer of, and not to be considered a retailer within the provisions of this part with respect to, property used or furnished by that person in altering new or used clothing, provided that both of the specified conditions apply. The following terms are defined: “cleaning,” “drycleaning,” “dyeing,” “spotting,” and “pressing.”

Section 6018.7 excludes a licensed hearing aid dispenser from the definition of retailer.

Section 6018.8 excludes the Department of Transportation from the definition of retailer.

Section 6018.10 excludes an all-volunteer fire department from the definition of a retailer.

Section 6019 states that every individual, firm, copartnership, joint venture, trust, business trust, syndicate, association or corporation making more than two retail sales of tangible personal property during any 12-month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy, are to be considered a retailer within the provisions of this part in his or its individual, firm, copartnership, joint venture, trust, business trust, syndicate, associate or corporate capacity.

Section 6020 provides that producers of X-ray films or photographs for the purpose of diagnosing medical or dental conditions of human beings, excluding use of those products for purely cosmetic purposes, are the consumers of materials and supplies used in the production thereof.

Section 6021 specifies that the sales tax applies to the receipts of operators of vending machines located on Army, Navy or Air Force installations and dispensing tangible personal property of a kind the gross receipts from the retail sale of which are subject to tax. This section does not require payment of sales tax measured by receipts of such operators who lease the machines to exchanges of the Army, Air Force, Navy or Marine Corps which acquire title to and sell the merchandise through the machines to authorized purchasers from exchanges. The term “operator” is defined.

Section 6022 defines the term “vehicle” and “motor vehicle.”

Section 6023 defines the term “mobile transportation equipment.”

Section 6024 defines the term “one-way rental trucks.”