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 the early termination of the lease blah blah." The actual text below (and the link below that), and the bolds are mine.
The "rentals" subject to the tax include any payments required by the lease, including amounts paid for personal property taxes on the leased property, whether assessed directly against the lessee or against the lessor, but does not include amounts paid to the lessor for
(A) Collection costs, including attorney's fees, court costs, repossession charges, and storage fees; but tax does apply to any delinquent rental payments, including those collected by court action;
(B) Insuring, repairing or refurbishing the leased property following a default;
(C) Cost incurred in defending a court action or paying a tort judgment arising out of the lessee's operation of the leased property, or any premiums paid on insurance policies covering such court actions or tort judgments;
(D) Cost incurred in disposing of the leased property at expiration or earlier termination of the lease;
(E) Late charges and interest thereon for failing to pay the rentals timely;
(F) Separately stated optional insurance charges, maintenance or warranty contracts;
(G) Personal property taxes assessed against personal property where a bank or financial corporation is the lessor.
(H) "Customer facility fees" collected pursuant to Civil Code section 1936, or any other law whereby a local agency operating an airport requires a rental car company to collect a facility financing fee from its customers.
The link (with the above excerpt about a quarter of the way down):http://www.boe.ca.gov/lawguides/busines ... 5-all.html
I should say, I'm not a lawyer, just an internet searcher who, like anybody, really does not want to pay tax on fees...