Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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L

335.0000 LEASES OF MOBILE TRANSPORTATION EQUIPMENT— Regulation 1661

Annotation 335.0062

335.0062 One-Way Rental Trucks. A lease contract has an "estimated" term of five to six months but gives the lessee the absolute right to terminate upon 24- hours' notice.

Assuming the other conditions of section 6024 are met, the only definite term of the lease contract is 24 hours since the lessee is given an unconditional right to terminate the lease contract at the end of that period. There is no substantial difference between this contract and an open-end contract at a local rental dealer where the contract term depends on how long the lessee wishes to keep it. Therefore, the lease contract is for less than 31 days. 4/10/75.