How were chemical-toilet rentals, optional cleaning charges, and leases to California state parks taxed under the 1968 special rule?
Apply this to your situation
This page answers the general question as of 1969. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
Section 6010.7 made chemical-toilet leases taxable from October 1, 1968, measured by lease/rental price regardless of whether units remained in substantially the same form or the lessor paid sales-tax reimbursement/purchase-price use tax.
The Board had issued no special chemical-toilet ruling. Staff nevertheless opined that if only a unit was leased with no services, the entire rental price was taxable.
A cleaning amount could be excluded only if the lessor was willing to lease without cleaning, furnished it at the lessee's option and separately stated the charge. The lessor remained liable for tax on materials used in that cleaning.
The requester specifically asked how to adjust charges on a California State Park contract to offset tax. Counsel gave no price adjustment method. Park leases were taxable like private-person leases: the park owed use tax measured by rent, and the lessor had to collect/remit it.
No actual lease, cleaning election, state-park contract, material purchase or tax reporting is supplied. Former Ruling 70(c)(2)(F) was enclosed with the original but not preserved in this PDF.
The live annotation publishes the entire-rent, optional separately stated cleaning and state-park results. It omits the section 6010.7 effective date and regardless-of-form/acquisition-tax rule, lessor-willingness requirement, material tax, collection mechanics, no-special-ruling posture and missing records.
Common questions
Did prior tax-paid status remove tax from chemical-toilet rent?
No under the special historical statute described by the letter.
When was cleaning outside the rental measure?
Only when the lessor would rent without it, the lessee chose it and its charge was separately stated.
Who paid tax on cleaning materials?
The lessor as consumer.
Were California state-park leases exempt?
No. They were treated like leases to private persons.
Who handled use tax on a park lease?
The park paid use tax measured by rent, and the lessor collected/remitted it.
Did counsel explain how to adjust the park contract price?
No. The answer stated tax liability/collection, not a pricing formula.
Was this a special Board ruling?
No. The letter explicitly says no special ruling had issued and presents staff opinion.
Was former Ruling 70 included?
No. It was identified as enclosed, but the PDF omits it.
Is a completed transaction or tax outcome shown?
No. There is no lease, invoice, collection, return, audit, payment, claim or appeal.
Citations and references
- Revenue and Taxation Code section 6010.7 — special rent rule effective October 1, 1968
- Former Ruling 70(c)(2)(F), last paragraph — cited/enclosed historical authority; copy absent
- December 20, 1968 request — referenced/partly quoted; standalone letter absent
- Unit/lease/State Park/cleaning/material/collection records — absent
- January 9, 1969 counsel letter — expressly staff opinion without implemented outcome
- Official Annotation 330.2080 — three-part result without statute/collection/posture/source limits
Source
- Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
- Annotation page: Annotation 330.2080
- Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/330-2080.pdf
Original ruling text
STATE OF CALIFORNIA
330.2080
STATE BOARD OF EQUALIZATION
January 9, 1969
--- --- ----- --- ----- --- --Gentlemen:
This is in reply to your letter of December 20, 1968 in which you request information as to the application of the Sales and Use Tax Law to leases of chemical toilet units. Section 6010.7 of the Revenue and Taxation Code provides that, effective October 1, 1968 the lease of a chemical toilet unit is subject to tax measured by the lease or rental price regardless of whether the unit is leased in substantially the same form as acquired and regardless of whether sales tax reimbursement or use tax has been paid (see Ruling 70(c)(2)(F) last paragraph, copy enclosed). The Board has not issued a special ruling covering leases of chemical toilet units. However, this staff has expressed its opinion that: (1) Tax applies as measured by the entire rental price of a chemical toilet unit where only the unit is leased and no services are provided, and (2) If the lessor is willing to lease the chemical toilet units without a cleaning service but provides such a service at the option of the lessee, then a separately stated cleaning charge may be excluded from the measure of tax. The lessor will of course have to pay tax on the materials used in the cleaning service. You specifically ask how “…charges on a contract to a California State Park [are to be adjusted] to offset this tax….” Leases of chemical toilets to California state parks are subject to tax in the same manner as leases to any private person. The lessee must pay a use tax based on the rental charge and the lessor must collect the use tax from the lessee and remit the tax to this Board. If we may be of further assistance in this matter, please do not hesitate to write again. Very truly yours,
T. P. Putnam
Tax Counsel
By
Gary J. Jugum
GJJ/ss [1b]
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