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 330.3955

(d) "SUBSTANTIAL CHANGE IN FORM"

330.3955 Costume Rentals. Costumes are constructed entirely by the lessor and then rented. Sales tax reimbursement is paid on materials used to construct the costumes.

The costumes made by the lessor are not leased in substantially the same form as acquired. Therefore, the lease is a continuing sale subject to use tax measured by rentals payable. However, the lessor may take a tax-paid purchase resold deduction for sales tax reimbursement paid on the purchases of materials incorporated into the costumes. 6/10/94.