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 330.2311.900

(a) IN GENERAL

330.2311.900 Lease of Vehicle. An employer plans to purchase a vehicle from an automobile dealer and furnish it to one of its employees as part of an overall compensation package. Under the plan, the employee would pay the employer a monthly "lease" fee and would not receive title to the vehicle at the end of the "lease" term. Since the furnishing of the vehicle is part of a benefit package, there is no way to identify the true rental price and this type of transaction is not regarded as a market transaction. Thus, for sales and use tax purposes, the employer is regarded as the consumer of the vehicle and cannot purchase the vehicle for resale. 7/26/99. (2000–1).