Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


A    B    C    D    E    F    G    H    I    J    L    M    N    O    P    R    S    T    U    V    W    X   

L

330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660

Annotation 330.3429

(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.