Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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135.0000 BANKS AND INSURANCE COMPANIES—Regulation 1567

Annotation 135.0176

135.0176 Leases by Insurance Company to Independent Agents. Use tax applies to rental receipts received by an insurance company on rental of computer equipment to its independent agents. Although the agents sell the company's insurance only, they are not the insurance company's employees but rather independent operators who are paid on a commission basis and who operate out of their own offices. Under such circumstances, the imposition of use tax upon these agents based on rental receipts has an impact on the insurance company which is at most minimal and indirect. A tax imposed on insurance agents is constitutionally and statutorily prohibited only where it directly affects the insurance company. 7/15/83.