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
(d) "SUBSTANTIAL CHANGE IN FORM"
330.4060 Plants and Trees. From the standpoint of growth alone, a plant or tree should be regarded as remaining in substantially the same form for purposes of section 6006(g)(5) unless by reason of its growth its value has increased by more than 20 percent.
A tree should be regarded as remaining in substantially the same form after a relatively simple base has been attached to it without extensive fabrication labor. An appropriate test is whether the value of the tree with the base exceeds by more than 20 percent the value of the tree without the base.
Plants or trees should be regarded as remaining in substantially the same form even after they are arranged into a particular pattern where the arrangement is made under the direction and control of the lessee, on his premises, after the lease is entered into, and if the arrangement does not last beyond the term of the lease. The fact that a person who is normally employed by the lessor assists in making the arrangement under the direction of the lessee does not change this result if his assistance is optional with the lessee and if the arrangement does not result in an increase in the rental rate over the usual rate for the plants and trees as separate items. 12/6/67.