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"
330.4169 Table Skirts and Drapes. A retailer rents tables and skirts or drapes for the tables at conventions. These skirts or drapes are rented separately and priced separately from the tables. Table drapes are cut to length from a bolt of material, banded and pleated at the retailer's shop, and attached to the table at the convention site. Labor cost for fabrication of the drapes average 34% of the material cost. Occasionally, customers who have not ordered table drapes will decide at the exhibition site that they want table drapes. The drapes are fabricated at the exhibition site. The rental charge of the drapes is the same regardless of whether the drapes are fabricated at the retailer's shop or at the exhibition site. The criteria used in determining whether property is leased in substantially the same form as acquired is the cost factor rather than to base value on rental price. The argument that, since the rental value of drapes fabricated at the retailer's shop and the drapes fabricated at the exhibition site is the same, the fair market value is the same and there has been no substantial change in form due to the fabrication, is not valid. Here, there has been a substantial change in form. 11/7/86.