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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
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330.0000 Leases of Tangible Personal Property—In General—Regulation 1660
Annotation 330.2021
(a) In General
330.2021 Change Reporting Basis. When a lessor paid neither sales tax reimbursement nor use tax on the equipment at the time of the purchase and did not timely elect to pay the use tax with its return for the period during which the equipment was first placed in rental service, the lease of the equipment by the lessor is a continuing sale and purchase. The lessor is not permitted to later elect to pay tax measured by the purchase price of the equipment, but rather is obligated to collect use tax from its lessees as measured by the rental receipts derived from the leases of the equipment. (Regulation 1660(c)(1).) 1/22/96.