Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2014
Property Tax Annotations
205.0000 BUSINESS INVENTORY EXEMPTION
205.0090 Oil Well Tools and Equipment. To determine whether a given company is leasing oil well tools and equipment or providing a service that involves the use of tools and equipment, investigation must be made into the business practices of the company rather than placing reliance only on the contract forms employed.
Tools and equipment held for and leased without operators are eligible for exemption. Tools and equipment "rented" with operators are not. Here the owner is providing a service and using tools and/or equipment in the performance thereof. Tools and equipment held both for use in the performance of a service and for rental would be ineligible for exemption for failure to satisfy the "held exclusively for lease" requirement. C 4/15/1988.