Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
(a) IN GENERAL
330.2465 Operators Provided in Connection with Leases of Tangible Personal Property. If the owner of the property always provides the operators, i.e., the owner will not provide the property without its operator, the transaction is not a lease. The charges made by the owner are regarded as charges for nontaxable services. The owner of the property is the consumer of the property and tax is due measured by the purchase price of such property.
If the person desiring to use the property has the option to obtain the property with or without an operator, the transaction is a lease even if the owner of the property provides the operator. In those transactions in which the owner of the property provides the operator and the lease payments are subject to tax, the measure of tax will include the charges for the rent but will not include the charges for the operator's services. 8/5/93.