1. (a) Purchasers and lessees of tangible personal property, the storage, use, or other consumption of which is subject to the use tax, must pay the tax:

   1. (1) To the person from whom such property is purchased or leased, if such person holds a seller's permit or a Certificate of Registration--Use Tax.

   2. (2) Directly to the board if the person from whom the tangible personal property is purchased or leased does not hold such a permit or certificate. Purchasers and lessees should not pay the tax to a person who does not hold either a seller's permit or a Certificate of Registration--Use Tax.

      Purchasers and lessees will be liable for payment of tax to the board unless receipts are obtained from sellers holding a seller's permit or a Certificate of Registration--Use Tax.

2. (b) Payment by Persons Holding Use Tax Direct Payment Permits. Notwithstanding the provisions of subdivision (a), persons who obtain use tax direct payment permits and issue use tax direct payment exemption certificates in good faith to the persons from whom tangible personal property, the storage, use, or other consumption of which is subject to the use tax is purchased, shall not pay the use tax to such persons but shall self-assess and pay state and local use tax under Part 1 (commencing with Section 6001), Part 1.5 (commencing with Section 7200), and, if applicable, Part 1.6 (commencing with Section 7251) directly to the Board. Use tax direct payment permits and exemption certificates must comply with the requirements of Regulation 1699.

Note: Authority cited: Section 7051, Revenue and Taxation Code. Reference: Sections 6202, 6203, 6367, 6401 and 7051.3, Revenue and Taxation Code.

History

1. Amendment and renumbering of former Section 2085 filed 8-7-69; effective thirtieth day thereafter (Register 69, No. 32).

2. Change without regulatory effect adding subsection (b) and amending Note filed 10-21-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 43).