Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
347.0000 MANUFACTURING EQUIPMENT—Regulation 1525.2
347.0475 Lease of Manufacturing Equipment. Regulation 1525.2(i)(1) provides that the partial sales and use tax exemption applies to taxable rental receipts which are paid by a qualified person on the lease of tangible personal property used in a manufacturing activity. This partial sales and use tax exemption is not available to lessors who lease property to qualified persons when the lessor elects to pay sales tax reimbursement at the time of acquisition of the property or pay use tax measured by the purchase price of the property. The application of the partial sales and use tax exemption is only available with respect to the lease transaction itself and not with respect to the lessor's acquisition of the property. 9/4/95.