Laws, Regulations and Annotations

Search

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   


G


280.0000 Gifts, Marketing Aids, Premiums and Prizes— Regulation 1670

Annotation 280.1160


280.1160 Use of Prize. "X" Co. distributes chances on a free automobile to customers as a means of furthering its sales of "Y" Co. products. The automobiles are purchased tax-paid by "X" Co. Following the award, "Y" Co. reimburses "X" Co. for the cost of the automobile. "X" Co. makes a taxable use of the automobiles in furthering its sales. The transfer of the automobile to the holder of the winning ticket in return for reimbursement paid by "Y" Co. is a taxable sale. For sales tax purposes it is of no consequence that a seller receives consideration from a person other than the person to whom he transfers the tangible personal property. 8/13/57.