Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2013
Property Tax Annotations
205.0000 BUSINESS INVENTORY EXEMPTION
205.0065 Linen Rentals. Typically, a contract for linen service specifies an initial quantity of linens to be delivered to the customer-lessee and contains a schedule for exchange to enable the supplier to clean and recirculate linens that have been laundered. Usually, there is no contractual provision requiring the supplier to maintain a specific number of linens in reserve. The number is discretionary with the supplier.
The inventory exemption applies as follows:
(1) Linens in the lessee's possession or those to which the lessee has a contractual right of control regardless of their location are not eligible for exemption because they are, in effect, out on lease.
(2) Linens in the lessor's possession held for sale or lease, even if intended to be exchanged for those in a lessee's possession but which are not committed to a specific lessee, are eligible for exemption. LTA 9/27/1991 (No. 91/68); C 9/5/1995.