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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.2885

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

Annotation 330.2885

(a) In General

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330.2885 Subleases—Not Leased in Substantially the Same Form as Acquired. Where the lessor manufactured the leased property, the lease of the property is a continuing sale, and there is no election available to pay tax on the purchase price. If such leased property is subsequently subleased prior to use by the lessee, the sublease is also a continuing sale if use tax is not paid measured by rentals payable under the prime lease. If use tax is paid on the prime lease, then the sublease is not regarded as a sale and the rentals payable from the sublease are not subject to use tax. 4/13/90.