Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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347.0000 MANUFACTURING EQUIPMENT—Regulation 1525.2

Annotation 347.0515

347.0515 Lessee—Not Pre-Qualified. Where a lessor leases property to a qualified person (as defined in Regulation 1525.2) in which the lease is regarded as a continuing sale and purchase, the lessee owes the difference between the full amount of tax on the rental receipts and the amount of the partial sales and use tax exemption. The lessor is required to collect this amount of tax from the lessee and pay it to the Board.

If a lessee is not pre-qualified by this Board, the lessor must collect the entire amount of tax due on rental receipts subject to tax.

If the Board later revokes a lessee's section 6377 partial exemption certificate, the lessee is responsible for paying the tax (plus interest) which was previously exempted by section 6377. 9/4/95.