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 330.2325

(a) IN GENERAL

330.2325 Maintenance Contracts. A lessee has an option to select one of two maintenance contracts in connection with the purchase of a computer. One provides for a full-time on-site field engineer and all parts. The other provides for training of personnel for technical certification on the equipment and provides for two on-site inspections by a field engineer. The lessee does not have an option to contract with a person of his/her choice; rather, he/she must elect to take one of the two maintenance options available. These maintenance charges are not optional within the meaning of Regulation 1660, since, regardless of the type of contract chosen, the lessee is required to contract with the lessor for maintenance. The charge must be included in the measure of tax. 2/18/91.