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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.1873

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330.0000 Leases of Tangible Personal Property—In General—Regulation 1660

Annotation 330.1873

(a) In General

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330.1873 Assignment of Lease. When a lease that is a "sale" and "purchase" is assigned, the rental payments remain subject to tax. Whether the assignor or assignee is responsible for collection and payment of tax depends on the nature of the assignment. If the assignment merely creates the right to collect the rental payments and creates a security interest, the lessor (assignor) remains responsible for collecting and paying the tax. If the assignment is an assignment of the lease contract together with the transfer of the right, title, and interest in the leased property for security purposes, the assignee is required to collect, report, and pay the tax. If the assignment is of the lease contract, together with the transfer of all right, title and interest of the leased property and there is no recourse by assignee against the assignor, the assignee assumes the position of the lessor and must collect, report, and pay the tax on the rental receipts. 2/27/90.