Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Transactions and Use Tax Annotations

800.0000 APPLICATION OF TRANSACTIONS (SALES) TAX AND USE TAX—Regulation 1823

Annotation 800.0014

800.0014 Fixed Price Contracts—Option Contracts. A contract that was entered into prior to the effective date of a transactions tax gives the purchaser an option to purchase additional units. The contract is not covered by a "grandfather clause" when the option is exercised after the effective date of the transaction tax. By exercising the option, the parties agree to buy and sell after the transaction tax effective date. Thus, the units purchased under the option are subject to the new transaction tax. 2/22/95.