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 330.5046

(e) SALES AND LEASEBACK TRANSACTIONS

330.5046 90-Day Limitation. A sale and leaseback agreement was signed by both parties within 90 days of the first functional "use of the equipment" by the lessee. However, the funding and drafting of the final document occurred after the 90-day period. Under the above conditions, section 6010.65(a)(2) is satisfied. The transaction would have been consummated on a timely basis, notwithstanding the fact that the sale and leaseback transaction may have remained executory, in part, for a period beyond the 90 day limitation date. Both the sale and the leaseback transaction would be excluded from the definition of "sale and purchase" (and thus tax free), since the lessee paid tax at the time of the original acquisition. 3/11/93.