Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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U

570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY

Annotation 570.0427

(a) IN GENERAL

570.0427 Use Tax—Principal Use Test. One of the tests used in determining whether property is subject to use tax is whether or not during the first six months following the entry of property into this state it was stored or used here more than one-half of the time. This test is solely to ascertain intent. The tax, if applicable, applies to the taxable moment following entry of the property into this state. This moment, no matter how brief, between the initial journey into this state and the beginning of continuous use in interstate or foreign commerce, is sufficient to sustain the imposition of the use tax. The taxable moment need not involve functional use of the property. It may be "keeping and retaining," "retention and installation," etc. If the property in question is stored in this state and is used to further the intrastate activities as well as the interstate activities of the owner, it cannot be said to have been used exclusively in interstate commerce. 10/9/67.