Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
150.0000 BUILDINGS AND OTHER PROPERTY AFFIXED TO REALTY—Regulation 1596
150.0580 Standing Timber. A contract to sell standing timber in which the purchaser is required to sever such timber at a given price per unit is regarded as a sale of personal property. If, however, purchaser is merely granted an option to sever the timber and is not required to make the severance, the contract is for the sale of an interest in realty not subject to sales tax.
If contract is for the sale of personal property and the purchaser proposes to cut the timber and sell it to a lumber mill, the sale would be exempt as a sale for resale. 12/31/53.