SECTIONS 6401-6411 - California Statutes

REVENUE AND TAXATION CODE

SECTION 6401-6411

6401. The storage, use, or other consumption in this state of
property, the gross receipts from the sale of which the purchaser
establishes to the satisfaction of the board were included in the
measure of the sales tax, is exempted from the use tax; provided,
however, that this exemption does not extend to the possession of, or
the exercise of any right or power over, tangible personal property
by a lessee under a lease.

6402. The storage, use or other consumption in this State of
property purchased from any unincorporated agency or instrumentality
of the United States, except (a) any property reported to the Surplus
Property Board of the United States, or to any agency succeeding to
the functions of that board, as surplus property by any owning agency
and (b) any property included in any contractor inventory, is
exempted from the use tax.
"Surplus property," "owning agency," and "contractor inventory" as
used in this section have the meanings ascribed to them in that act
of the Congress of the United States known as the "Surplus Property
Act of 1944."

6403. The storage, use, or other consumption in this state of
property donated by any seller to any organization described in
Section 170(b)(1)(A) of the Internal Revenue Code and located in
California, is exempt from the use tax. A museum shall not be a
qualifying donee organization under this section unless the museum is
a nonprofit museum described in subdivision (c) of Section 6366.4,
and uses the donated property exclusively for display purposes within
a museum.

6404. (a) The loan by any retailer of any tangible personal
property to any school district for an educational program conducted
by the district is exempt from the use tax.
(b) The loan by any retailer of any motor vehicle to the
University of California or to the California State University for
the exclusive use in an approved driver education teacher preparation
certification program conducted by the university or the state
university is exempt from the use tax.
(c) The loan by any retailer of a motor vehicle to be used
exclusively for driver training in an accredited private or parochial
secondary school in a driver education and training program approved
by the State Department of Education as a regularly conducted course
of study is exempt from the use tax.
(d) The loan by any retailer of any motor vehicle to a veterans
hospital or such other nonprofit facility or institution to provide
instruction in the operation of specially equipped motor vehicles to
disabled veterans is exempt from the use tax.
(e) If the retailer makes any other use of the property except
retention, demonstration, or display while holding it for sale in the
regular course of business, the use is taxable to the retailer under
Chapter 3 (commencing with Section 6201) as of the time the property
is first so used, and the sales price of the property to the
retailer is the measure of the tax.

6405. Notwithstanding Section 6246, the storage, use, or other
consumption in this state of the first eight hundred dollars ($800)
of tangible personal property purchased in a foreign country by an
individual from a retailer and personally hand-carried into this
state from the foreign country within any 30-day period is exempt
from the use tax. This section shall not apply to property sent or
shipped to this state.

6406. A credit shall be allowed against, but shall not exceed, the
taxes imposed on any person by Chapter 3 (commencing with Section
6201) of this part, by any ordinance enacted pursuant to Part 1.5
(commencing with Section 7200), by any ordinance enacted pursuant to
Part 1.6 (commencing with Section 7251), and by any ordinance enacted
pursuant to Article 2 (commencing with Section 37021) of Part 17 of
this division by reason of the storage, use, or other consumption of
tangible personal property in this state to the extent that the
person has paid a retail sales or use tax, or reimbursement therefor,
imposed with respect to that property by any other state, political
subdivision thereof, or the District of Columbia prior to the
storage, use, or other consumption of that property in this state.
The credit shall be apportioned to the taxes against which it is
allowed in proportion to the amounts of those taxes.
A credit, otherwise permitted by the foregoing provisions of this
section, shall not be allowed against taxes which are measured by
periodic payments made under a lease, to the extent that the taxes
imposed by any other state, political subdivision thereof, or the
District of Columbia were also measured by periodic payments made
under a lease for a period prior to the storage, use, or other
consumption of the property in this state.

6407. The possession of, or the exercise of any right or power
over, tangible personal property under a lease of such property is
exempt from the use tax for any period of time for which the lessee
is obligated to lease the property for an amount fixed by the lease
prior to August 1, 1965. The lessee shall be deemed not to be
obligated for any period of time for which he has the unconditional
right to terminate the lease upon notice, whether or not the right is
exercised.

6408. The storage, use, or other consumption in this state of
medical health information literature purchased by any organization
formed and operated for charitable purposes which qualifies for the
exemption provided by Section 214 (known as the "welfare exemption"),
which is engaged in the dissemination of medical health information,
is exempted from the use tax; provided, however, that such purchases
are made from a national office, or another branch of that national
office, of the same organization.

6409. The storage, use, or other consumption in this state of
health and safety educational materials and insignia routinely sold
in connection with health and safety and first aid classes, purchased
or sold by any national organization formed and operated for
charitable purposes which qualifies for the exemption provided by
Section 214 (known as the "welfare exemption"), which is engaged in
the dissemination of health and safety information, is exempted from
the use tax; provided, however, that such purchases are made from a
national office or another branch or chapter of such national office
of the same organization.

6410. The storage, use, or other consumption in this state of new
or used trailers or semitrailers which involves the moving or
operation laden of those trailers or semitrailers in accordance with
a one-trip permit issued pursuant to Section 4003.5 of the Vehicle
Code is exempted from the use tax.

6411. (a) The storage, use, or other consumption in this state of
tangible personal property becoming a component part of any railroad
equipment in the course of repairing, cleaning, altering, or
improving that railroad equipment outside of this state, and charges
made for labor and services rendered with respect to that repairing,
cleaning, altering, or improving, are exempt from the use tax.
(b) For purposes of this section, "railroad equipment" includes
locomotives, freight and passenger cars, maintenance of way
equipment, and any other equipment riding on flanged wheels and owned
or used by a common carrier engaged in interstate or foreign
commerce, or by any person for the purpose of leasing that equipment
to a common carrier engaged in interstate or foreign commerce.