Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595
(a) IN GENERAL
395.0068 Sale of Equipment Prior to Start of Operations. A joint venture was formed to construct, own, and operate a dairy products processing plant. It purchased equipment tax paid for use in the processing plant under construction. Since the date of purchase, for financial and other reasons, the joint venture sold the processing equipment to a leasing company who leased this equipment back to the joint venture under a true lease. The sale to the leasing company occurred when the processing plant was still under construction. In this situation, the joint venture is a retailer and a seller of the plant equipment. The sale of the plant equipment is not an occasional sale. Rather, it is a sale in the regular course of the joint venture's business and requires the holding of a seller's permit. The joint venture is therefore entitled to a tax-paid purchases resold deduction. 8/4/88.