Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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L

330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660

Annotation 330.1874.055

(a) IN GENERAL

330.1874.055 Assignment of Lease to Titling Trust. A motor vehicle dealer transfers to a titling trust vehicles which are being leased. Regardless of how the parties characterize the transaction (e.g., an assignment of the leases, a sale subject to leases, or a sale of the property and an assignment of the leases), this type of transaction is a sale of the property and an assignment of the leases. The sale is subject to tax unless the leases are continuing sales. If so, the purchaser (the titling trust) is purchasing the property for resale and must hold a seller's permit, collect tax on rentals payable, and report and pay that tax to the Board. 06/27/96.