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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
G
295.0000 Gross Receipts
Annotation 295.0400
(a) General
295.0400 Option to Purchase. Taxpayer leased a Bailey Bridge to lessee. The bridge subsequently collapsed. The lessee elected to pay for the loss by exercising an option to purchase the bridge rather than repairing and returning the bridge intact. The lessee merely minimized its damage loss by exercising the purchasing option. The correct measure of the tax is the fair market value of the salvage material and not the full "purchase" price. 12/3/62.