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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.2137

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

Annotation 330.2137

(a) In General

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330.2137 Date Lease Begins. A lease provides that the lessee's rent begins on the date of installation. The vendor does not bill the lessor until the lessee and the lessor both accept the equipment. The billing by the vendor may be as long as 120 days after installation.

In order to avoid paying tax on rental receipts, the lessor must report tax on cost on the return for the period in which the property was first placed in rental service. In this case, this would be the period in which the property was installed. 5/18/89.