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
330.2845 Single Payment in Advance. Under this type of lease, the lessee makes all lease payments in a lump-sum amount at the inception of the lease. Pursuant to Sales and Use Tax Law section 6457, the lessor must collect and report the use tax on all lease payments paid during the reporting period. This requirement is unaffected by the fact that the payments have not yet been "earned." In the event of an early termination of the lease, if the lessee receives a refund of the lump sum rental payment pro rated on time not used versus total time originally contemplated by the lease, the Board will refund tax on such amount. 10/21/93.