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
330.2289 Incidence of Tax in a Series of Leases. Where tangible personal property is leased and subleased to numerous lessors with no use of the property except by the final sublessee and no sales tax has been paid anywhere, the "definite point" at which tax applies is the end of the chain, i.e., the sublease to the final sublessee. Since no tax had been paid on any of the leases or the original purchase, all leases prior to the lease to a consumer are leases (sales) for resale, whether or not a resale certificate is given. If uncollectible from the last sublessor, one can look only to the consumer/lessee for the tax. 9/16/85.