Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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D

210.0000 DEMONSTRATION, DISPLAY AND USE OF PROPERTY HELD FOR RESALE—General—Regulation 1669

Annotation 210.0430

(a) GENERAL

210.0430 Personal Use of Video Tapes. A lessor of video tapes, video cassettes, and video discs lends these items to its employees at no charge. The lessor is considered to be holding these tapes for demonstration and display and is actually selling them (in continuing sales). Its use of the tapes by lending them to its employees is not inconsistent with its continued resale of them. Thus, pursuant to Regulation 1669(f)(1)(B), the lessor owes tax measured by the fair rental value when lending tapes to its employees. The fair rental value would be the amount the lessor would charge a nonemployee for rental of the tape. 12/30/93.