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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
B
150.0000 Buildings and Other Property Affixed to Realty—Regulation 1596
Annotation 150.0385
150.0385 Lessor and Lessee Sales of Fixtures.
(1) The sale of a fixture by a lessee of realty to the lessor/owner is not taxable unless the contract of sale contemplates removal by either party.
(2) The sale of a fixture by a lessor/owner of realty to the lessee is not taxable unless the contract of sale contemplates removal by either party.
(3) The sale of a fixture by the lessee of realty to a successor lessee of the realty is taxable if both parties have the present right of removal or if the contract of sale contemplates removal by either party.
(4) The sale of a fixture by the lessor of a fixture to the lessee of the fixture is taxable as a sale of tangible personal property if the lessor has the right to remove the fixture on breach or termination of the lease and the lessor is not also the lessor of the realty. The transaction is also taxable if the contract of sale contemplates removal by either party. 3/18/75.