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
(b) RENTAL RECEIPTS—ITEMS INCLUDED AND EXCLUDED
330.3429 Loan of Coffee Machines. A taxpayer is engaged in selling and leasing espresso coffee machines which it purchases in Europe. As a sales incentive, the taxpayer offers machines to customers on a trial basis. During this test period, the taxpayer collects a fee from the potential customer based on the number of cups served. Less than one-half of the fee is for the coffee beans.
The machines which are provided on a trial basis are regarded as being leased. The lease amount is the fee less the charge for the coffee beans. Tax applies to the amount of the lease payments. 1/23/95.