Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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545.0000 "TAX-PAID PURCHASES RESOLD"—Regulation 1701

Annotation 545.0007

545.0007 Ambulance Sold by City before Use. A city purchased three ambulances which it could not use due to an adverse court decision. Subsequently, the city sold the ambulances to an independent ambulance service.

Since the city resold the ambulances before use, the city may take a deduction for tax paid purchases resold on its return if the City is a retailer and has a sufficient tax liability to claim a deduction. If it is unable to claim the deduction or its return, the vendor who sold the ambulances to the city could file a claim for a sales tax refund with the Board on the ground that the City resold the ambulances before using them. The vendor must then reimburse the city for sales tax reimbursement paid to the vendor. 9/30/94.