Were charges for printed lists of available rental properties subject to California sales tax?

Plain-English summary

A redacted seller's February 4, 1977 request asked how tax applied to charges for available-rental-property lists distributed to clients.

Tax Counsel Gary J. Jugum repeated the Board's advice that those charges were taxable. A person furnishing lists of available dwellings made taxable tangible-personal-property sales unless acting as an “advance fee rental agent” under Real Estate Commissioner regulations. The source does not identify or reproduce those regulations or establish that the requester qualified.

The letter promised uniform application to similar sellers and said the Board was taking possible steps to ensure they were properly licensed under the Sales and Use Tax Law. The requester had supplied material from a competitor. Section 7056 barred disclosure of retailer reporting information, but Jugum could say the competitor's item was taxable and that the retailer had to report and pay tax on its sales.

Section 6487 supplied a three-year period for issuing deficiency determinations when returns had been filed and an eight-year period when returns had not been filed. The source does not show the requester's or competitor's returns, any determination, amount, payment, or outcome.

Source and live-annotation limits

The official PDF does not include the February 4 request, rental-property lists, clients, delivery method beyond distribution, charges or invoices, sales, advance-fee-agent application or regulations, license or permit records, competitor material, competitor identity, returns, deficiency determination, tax calculations or payments, audit, assessment, claim, appeal, or outcome. The requester, clients, competitor, retailers, transactions, and amounts are redacted or unidentified.

The source prints “a person who furnishes list,” capitalizes “Provides” mid-sentence, and includes j: alicetilton. The original-text section preserves those forms rather than silently correcting the official record.

The live annotation preserves the taxable-list-charge conclusion and advance-fee-rental-agent exception. It labels the distributor an “agent,” while the supporting letter identifies only a redacted seller and separately states the agent exception. The live entry omits the February request, tangible-property analysis, Real Estate Commissioner regulations, uniform-enforcement and licensing response, competitor material and taxable-item statement, section 7056 confidentiality limit, retailer reporting and payment, section 6487 and both limitation periods, missing records, redactions, and absent outcome.

What this means for you

Rental-list sellers and tax professionals

Do not assume rental information is a nontaxable service when delivered as a list. Preserve each list, delivery method, client agreement, charge, invoice, sale, advance-fee-agent authority and evidence, licenses, returns, tax calculations, determinations, and payments.

Common questions

Q: Were charges for the rental lists taxable?

A: Yes.

Q: What exception did the opinion identify?

A: A person acting as an advance-fee rental agent under Real Estate Commissioner regulations.

Q: Did the source explain how to qualify for that exception?

A: No.

Q: What limitations periods did the letter mention?

A: Three years when returns were filed and eight years when no returns were filed.

Q: Did the Board disclose the competitor's reporting information?

A: No. It cited section 7056's confidentiality rule, but said the submitted competitor item was taxable.

Citations and references

• Former California Revenue and Taxation Code § 7056
• Former California Revenue and Taxation Code § 6487
• Real Estate Commissioner regulations governing an advance-fee rental agent — not identified or included
• February 4 request, lists, client sales, competitor material, licenses, returns, determinations, tax records, and outcomes — described or implicated but not documented

Verbatim support

From the official Tax Counsel letter:

It has been our position that a person who furnishes list of dwellings available for rental is making sales of tangible personal property subject to tax unless the person is acting as an “advance fee rental agent” in accordance with the regulations of the Real Estate Commissioner.

Although Revenue and Taxation Code Section 7056 Provides that it is unlawful for the Board to make known in any manner whatever any information pertaining to any retailer required to report to the Board, we can advise you that it is our opinion that the item in question is a taxable item.

Revenue and Taxation Code Section 6487 provides a three-year statute of limitations period for the issuance of tax deficiency determinations where returns have been filed and an eight-year period where there has been a failure to file tax returns.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0930
• Original supporting opinion: 385.0930 PDF

Original ruling text

385.0930

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
(916) 445-2641

February 18, 1977

Mr. -. -. ----- --- --- --XXX -. --- --.
---, CA XXX
Dear Mr. ---:
XXX
XXX
This is in response to your letter of February 4, 1977. You have raised a question with respect to the proper application of the tax to charges made of lists of available rental properties. We have advised you that sales tax applies to charges made for lists of available rental properties distributed by you to your clients. It has been our position that a person who furnishes list of dwellings available for rental is making sales of tangible personal property subject to tax unless the person is acting as an “advance fee rental agent” in accordance with the regulations of the Real Estate Commissioner. It continues to be our advice to you that tax applies to charges made by you for lists of available rental properties sold to your clients. It is our intention to apply the sales tax law uniformly to all persons engaged in similar selling activities. Accordingly, we assure you that we are taking steps possible to see to it that persons engaged in the selling activities in question are properly licensed under the Sales and Use Tax Law. You have furnished us with material published by one of your competitors. Although Revenue and Taxation Code Section 7056 Provides that it is unlawful for the Board to make known in any manner whatever any information pertaining to any retailer required to report to the Board, we can advise you that it is our opinion that the item in question is a taxable item. It

Mr. -. -. --XXX
XXX

385.0930

is, of course, our duty and responsibility to see to it that the retailer of the item properly reports and pays sales tax with respect to its sale. For your information, Revenue and Taxation Code Section 6487 provides a three-year statute of limitations period for the issuance of tax deficiency determinations where returns have been filed and an eight-year period where there has been a failure to file tax returns.

Very truly yours,

Gary J. Jugum
Tax Counsel
j: alicetilton
bc:

Fresno – District Administrator