Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
(a) IN GENERAL
330.2920 Tax-Paid Acquisition by Stockholders of Lessor Corporation. A corporation formed by doctors who exchanged their equipment for capital stock of the corporation is required to collect tax measured by rental receipts from the doctors leasing the equipment from the corporation, although the doctors paid the sales tax on the original purchase of the equipment, because the corporation has a distinct personality from that of the individual doctor and after the transfer of the equipment to the corporation by the doctors, the corporation became the lessor of the equipment. The doctors paid the sales tax on the equipment prior to its transfer to the corporation, no tax was paid by the corporation to the doctors, and only lessors who have paid sales tax may lease property tax-free. 12/15/69.