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Business Taxes Law Guide—Revision 2024

BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.3650

Sales and Use Tax Annotations


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

Annotation 330.3650

(c) Continuing Sale and Purchase

330.3650 Lessor/Lessee Merger. A lessor merges with a lessee pursuant to a statutory merger. Upon merger, the lease relationship ends. The surviving corporation will now "use" the equipment. As such, it will be liable for use tax on the property acquired ex-tax, as measured by its original purchase price, with an offset for the amount of taxes paid on the rental receipts of the property. 12/11/86.