Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
(a) IN GENERAL
330.2715.900 Real Estate Signs. A taxpayer is in the process of becoming a franchiser. Its primary business will be manufacturing complete units of real estate signs including frames, signs, and stakes. The units will be sold to its franchisees who will in-turn rent them to local real estate offices. The franchisees' services will include the placement and removal of the unit. Some models will include riders (additional signs). The franchisees will lease the units to their customers in the same form as acquired. The units may not be modified but may include, as an option, the changing of riders.
Even though a rider on some units may be changed depending on the lessees' desires, such changes take very little effort. The franchisees would be leasing the units in the same form as acquired. The franchisees may, therefore, elect to pay the franchiser sales tax reimbursement or timely pay use tax measured by the purchase price and lease the units with no further sales or use tax being due. Alternatively, they may issue a resale certificate and collect use tax from their lessees measured by rentals payable. 5/20/88.