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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.3426

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

Annotation 330.3426

(b) Rental Receipts—Items Included and Excluded

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330.3426 Lease Payments Made Prior to Delivery of Leased Property. A lessor purchases property as specified by the lessee. The lease payments begin on execution of schedules listing the leased property. The lease provides for "interim rent" for the period beginning when the lessor advances funds for the purchase of the property and ending when the schedules are executed.

The "interim rent" is subject to tax. It is in the nature of interest and the lease would not be executed if the "interim rent" is not included. The "interim rent" is regarded as part of the amount which the lessee is required to pay to obtain the use of the property. 9/23/82.