Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
(b) CONDITIONAL DELIVERY
495.0520 "Sale or Return." Sale of personal property on a "sale or return" basis, wherein title passes upon delivery to the buyer subject to a condition subsequent whereby the buyer may revest title to the unused portion of the property by returning the same to the seller, constitutes a taxable sale.
If upon the return of such unused property, the seller fails to refund or credit the full sales price, including all freight charges for delivery of the goods, if title passes upon delivery, no deduction may be taken for "returned merchandise." 1/9/54.