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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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L


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

Annotation 330.2019

(a) In General


330.2019 Cap and Gowns. Generally, a lease of collegiate caps and gowns to a university for one year does not include a recurring laundry provision despite the fact that students anticipate a clean cap and gown. On the other hand, in the case of a lease for more than a year, it is assumed that recurring laundry service is provided as essential part of the lease and, thus, such leases are excluded from the definition of a sale by section 6006(g)(2) and the lessor is the consumer of the caps and gowns. 6/2/82.