"Inventory" means tangible personal property in the possession of a defendant that (a) is held by the defendant for sale or lease or to be furnished under contracts of service or (b) is raw materials, work in process, or materials used or consumed in his trade, business, or profession. Inventory of a person is not to be classified as his equipment.
§ 481.120.Inventory
Title 6.5. Attachment · Chapter 1. Words and Phrases Defined · Enacted 1974 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 481.120 defines "inventory" as tangible personal property a defendant holds for sale or lease or to be furnished under service contracts, or as raw materials, work in process, or materials used in the defendant’s trade or business, and provides that inventory is never classified as equipment.
Full Text of § 481.120
Plain-English Summary
Inventory covers goods a business holds to sell or lease, materials it will furnish under a service contract, and the raw materials or work-in-process it consumes in running the business. Section 481.120 draws a firm line against overlap with equipment: property classified as inventory cannot also be equipment under § 481.100. Sections 488.395 and 488.405 set out the levy procedures for attaching inventory of a going business.
Frequently Asked Questions
Can raw materials count as inventory?
Yes. Section 481.120 includes raw materials, work in process, and materials consumed in the defendant’s trade or business within the definition of inventory, alongside goods held for sale or lease.
Can the same property be classified as both inventory and equipment?
No. Section 481.120 states that inventory is not to be classified as equipment, keeping the two categories separate for levy purposes.
Amendment History
Added by Stats. 1974, Ch. 1516.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: inventory definition california attachmentattaching business inventory california