7205.1.
(a) Notwithstanding any other provision of law, in connection with any use tax imposed pursuant to this part with respect to the lease (as described in Sections 371 and 372 of the Vehicle Code) of a new or used motor vehicle (as defined in Section 415 of the Vehicle Code), the place of use for the reporting and transmittal of the use tax shall be determined as follows: (1) If the lessor is a new motor vehicle dealer (as defined in Section 426 of the Vehicle Code), the place of use of the leased vehicle shall be deemed to be the city in which the lessor’s place of business (as defined in Section 7205 and the regulations promulgated thereunder) is located. If a lessor, who is not a person described in this paragraph, purchases the vehicle from a dealer (as defined in Section 285 of the Vehicle Code), the place of use of the leased vehicle shall be deemed to be the city in which the place of business (as defined in Section 7205 and the regulations promulgated thereunder) of the dealer from whom the lessor purchases the vehicle is located. The place of use as determined by this paragraph shall be the place of use for the duration of the lease contract, notwithstanding the fact that the lessor may sell the vehicle and assign the lease contract to a third party.
(2) If the lessor is not a person described in paragraph (1) and purchases the vehicle leased from a source other than as described in paragraph (1), the use tax shall be reported to and distributed through the countywide pool of the county in which the lessee resides.
(b) Except as described in paragraph (1) of subdivision (a), this section shall not apply if the dealer or leasing company entering into the lease agreement is located outside of California.
(c) The provisions of this section shall apply to lease transactions entered into on or after January 1, 1996.
(d) As used in this section, the word “city” means a city, city and county, or county.