So it turns out there ARE taxes on fees... argghh. I sent back my lease disposition fee payment minus the tax and was advised that any FLAT disposition fee is still considered part of a :roll: rental and thus taxable by state of California. Only if they charged individually as direct...
According to a search on-line, there should be NO TAX on disposition fees in the state of California. To paraphrase the law, "we can tax on everything except the following: blah blah we won't tax you on taxes blah blah we won't tax you on fees to refurbish your lease at the end of the lease or...