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BTLG Table of Contents > Sales and Use Tax Annotations > B > 150.0000 Buildings And Other Property Affixed To Realty > Annotation 150.0528

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150.0000 Buildings and Other Property Affixed to Realty—Regulation 1596

Annotation 150.0528

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150.0528 Removal of Sand from Land by Lessee. When a lessee is granted permission to sell river sand, no sales tax is involved between the lessor and the lessee. However, if the lessee removes the sand and sells it, the lessee is making a sale of tangible personal property and the sale is subject to tax.

If the lessee grants an option to a contractor pursuant to which the contractor will provide excavating, transporting equipment, and digging the sand from the river bottom, and if the lessee sells sand, the gross receipts of the lessee will be subject to the tax. However, if the lessee merely assigns his right to remove sand, the removal of the sand by the assignee would be in the same status as removal of the sand by the lessee, and the tax would not apply. 1/24/62.