Laws, Regulations and Annotations
Search
Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
C
185.0000 Consignees and Lienors of Tangible Personal Property for Sale—Regulation 1569
Annotation 185.0203
185.0203 Lien Holder. A landlord owned a commercial building. He rented office space to various tenants. He did not hold a seller's permit. A tenant abandoned the leased premises, leaving behind various equipment. At least some of the equipment was subject to liens. The landlord purchased the abandoned equipment from various lien holders. He later located a new tenant who agreed to lease the office and to purchase the equipment. The new tenant planned on selling most of the equipment and to use the proceeds to reduce the amount owed to the landlord. By agreement, the new tenant located buyers and arranged all terms of the sales and the landlord invoiced the buyers, collected the money and credited the tenant for the amount collected.
The landlord is regarded as making only one sale, the sale of the various pieces of equipment to the tenant. This was an exempt occasional sale. The landlord did not locate buyers, negotiate the terms of the sale, receive a commission, or have actual possession of the equipment at the time of the sale. He was merely protecting his secured interest in the property. He was not a consignor selling through the tenant. The tenant was selling equipment which was owned by the tenant but subject to a lien in favor of the landlord. 11/2/93.