Was temporarily transferring a photograph for consideration a taxable lease regardless of reproduction rights, and what historical newspaper exception applied?

Plain-English summary

September 21 Los Angeles audit memo asked whether Annotations 1669.60/1673.70 were superseded because of Elliott D. McCarty's September 14 memo on typography leases. All referenced sources absent.

Annotation 1673.70 predated August 1, 1965 new lease tax; memo kept it for prior period. Annotation 1669.60 dated March 15, 1966 was superseded to extent it treated temporary paid possession transfer nontaxable. PDF visibly says temporary possession of a photographer; next paragraph and subject establish photograph context, but text is preserved.

Section 6006.3(a): temporary possession/use of photograph for consideration was taxable lease—rental, hire or license—whether lessor granted reproduction rights.

Live annotation later added expired exception: November 10, 1969–July 14, 1991, former section 6362(b) exempted possession but not title transferred for one-time reproduction in newspaper regularly issued at average intervals no more than three months. This update is absent from 1967 PDF.

Common questions

Did reproduction rights determine whether transaction was lease?

No. Temporary possession and use for consideration controlled.

What happened to earlier annotations?

Pre-August 1965 Annotation 1673.70 survived for earlier period; March 1966 Annotation 1669.60 was superseded to extent contrary. Their texts are absent.

Did title have to transfer?

No for the lease rule, and the historical newspaper exception specifically required title not to transfer.

What did later exception cover?

One-time reproduction in a qualifying regularly issued newspaper during the stated 1969–1991 period.

Does supporting PDF state that exception?

No. It appears in the official annotation's later update.

Does PDF literally say photographer?

Yes in supersession sentence, while subject and operative next paragraph say photographs. This page does not alter preserved text.

Is historical newspaper exception current?

No. Live entry gives explicit end date July 14, 1991.

May photographer rely on this result?

No. It is historical editorial advice with missing sources and expired exception; current treatment and exact media/rights must be checked.

Citations and references

• Section 6006.3(a) — temporary paid possession/use as rental, hire or license
• Annotations 1669.60/1673.70 and September audit/McCarty memos — referenced but absent
• Photo/transfer/reproduction/publication records — absent
• Former section 6362(b) — later live time-limited newspaper exception
• Official Annotation 330.2600 — 1967 rule plus later historical update

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: Annotation 330.2600
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/330-2600.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Los Angeles - Dist. Prin. Aud. (JQT)

From:

Tax Counsel (TPP:AWP)

Subject:

Photographic Reproduction Rights

330.2600

October 2, 1967

In your memo of September 21, 1967, you ask whether annotations 1669.60 and 1673.70 have been superseded because of Mr. Elliott D. McCarty’s memo of September 14, 1967 pertaining to leases of typography. Annotation 1673.70 is dated prior to August 1, 1965, while annotation 1669.60 was written March 15, 1966. The earlier annotation cannot be regarded as superseded for the period prior to August 1, 1965, the date when the new tax on leases became effective. The later annotation is superseded to the extent that it holds that the temporary transfer of possession of a photographer for a consideration is not taxable. If the possession and use of a photograph is temporarily transferred for a consideration, the transaction constitutes a lease (i.e., a rental, hire or license within the meaning of Section 6006.3(a)) regardless of whether reproduction rights are granted by the lessor. The transaction, therefore, is taxable.

AWP:smk

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