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 330.2322

(a) IN GENERAL

330.2322 Loan of Equipment to Customers. A taxpayer sells blood analysis equipment and the chemicals used in the analysis. The taxpayer will also lend equipment to the users who enter into its Reagent Rental Plan Agreement in which the user agrees to purchase a stated dollar amount of reagent per year at an elevated price. Under this plan, the difference between the regular price for the reagent and the elevated price constitutes rental receipts for the use of the equipment. Whether these receipts are taxable depends on whether the equipment was acquired tax paid and rented in the same form as acquired. 10/25/74.