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 330.2110

(a) IN GENERAL

330.2110 Continuing Sale for Life of Lease. When a lessor leases property in a continuing sale, the lease of that property by the lessor is always a continuing sale. Similarly, when a lessee leases property for sublease and gives the prime lessor a resale certificate, the lease to the lessee/sublessor remains a continuing sale for the life of the prime lease agreement. The lessee cannot revoke the resale certificate in midterm and convert the subsequent lease to a taxable status. In other words, the giving of a resale certificate fixes the character of the transaction for the period of the lease term between the prime lessor and its lessee. 1/15/82.