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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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330.0000 Leases of Tangible Personal Property—In General—Regulation 1660

Annotation 330.2176

(a) In General


330.2176 Election to Report on Cost. Under Regulation 1660, when a person pays sales tax reimbursement to his vendor and leases that property in substantially the same form as acquired, he has made an irrevocable election to treat the lease as a nonsale. Accordingly, he cannot later, either by taking a tax paid purchase resold deduction or having the seller file a claim for refund, convert a nonsale to a sale. This is so notwithstanding the fact that he has collected use tax measured by rental receipts from the beginning of the lease period. 5/26/71.