Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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L

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

Annotation 330.3657

(c) CONTINUING SALE AND PURCHASE

330.3657 Leases of Videos by Libraries. Corporation A sells videocassettes to Corporation B. Corporation B places an inventory of the videocassettes in libraries under an agreement by which the libraries rent the videocassettes to third parties. The libraries retain 20% of the rental and remit 80% to Corporation B.

Under these circumstances, the sale of the videocassettes by A to B is a sale for resale. The placement of the videocassettes in the libraries is a consignment by Corporation B. The libraries' leases of the videocassettes are subject to tax as continuing sales under section 6006(g)(7). 6/24/88.