Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
(a) IN GENERAL
330.2010 Capitalized Cost Reduction. Under a long-term lease of a motor vehicle, a lessee may pay a number of fees including the first month's rent and an initial sum of money called a "capitalized cost reduction." The effect of the capitalized cost reduction is to reduce the amount of the rental, normally payable by the lessee. Such payments are in the nature of advanced rental payments and subject to tax. 1/6/89.