Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 465.1600


465.1600 Time for Payment of Use Tax. Pursuant to a contract, a chemical company agrees to sell to an oil company all of its needs for a particular consumable chemical for a period of ten years at a fixed contract price. The parties agreed that, during the first four years, the buyer would be billed for only a portion of the product delivered. The remainder, which was for product delivered and not billed, would be billed on a deferred basis to be paid over the remaining contract period. They also agreed that upon the happening of a certain contingency the price may be adjusted downward. The time for reporting the use tax is at the end of the quarterly period in which the sale and purchase occurred irrespective of the billing procedure agreed to in the contract. The measure of tax is the contracted price until such time as the contingency becomes a reality and the price is actually reduced. 11/10/71.