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 330.2305.990

(a) IN GENERAL

330.2305.990 Lease of Property Repurchased. A firm sells backdrops which are used for television and films. On occasion, it repurchases the backdrop and places it in rental inventory. Since it will be leasing the backdrop in substantially the same form as acquired in the repurchase, the firm has the option to timely pay tax on the cost of the repurchase and the rental will not be subject to tax. If it does not timely report tax on cost, the rental receipts are subject to tax. 5/27/97.