Tax Type
Retail Sales and Use Tax
Description
Lease of audio/visual production equipment; Change effective July 1, 1995
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
09-05-1995
September 5, 1995
Re: Request for Ruling: Retail Sales and Use Tax
Dear***************:
This will reply to your letter of August 22, 1995 in which you request a ruling as to the sales and use tax application to the lease of audio/visual production equipment.
FACTS
More specifically, you are requesting a ruling on the sales tax application to the lease of audio/visual equipment which was entered into prior to July 1, 1995, however, qualifies for the sales and use tax exemption afforded by House Bill 1512 passed by the 1995 General Assembly that became effective July 1, 1995.
RULING
Based on the information provided in your letter, all monthly lease payments made prior to July 1, 1995 will be subject to the retail sales and use tax. Likewise, all monthly lease payments made subsequent to July 1, 1995 will be exempt from the sales and use tax. In the event all of the sales tax is paid on the aggregate amount of the lease on the front end, you may prorate the tax due based on the taxable versus nontaxable use. A refund may be requested from the lessee for the portion of the lease subsequent to July 1, 1995. A copy of exemption certificate Form ST-20A (copy enclosed) and a copy of this letter should accompany your refund request.
If you should have any further questions, please feel free to contact*************Office of Tax Policy, at*************.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10125K
Rulings of the Tax Commissioner