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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.2285

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

Annotation 330.2285

(a) In General

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330.2285 Indenture Trustee. An owner/lessor forms a trust and selects a bank to act as trustee. The trust purchases the equipment and leases it to a lessee. Under these circumstances, the trustee (bank) is responsible for collecting and reporting tax on behalf of the trust.

In cases in which rents are collected by a bank as an indenture trustee, the owner/lessor of the property is responsible for collection and reporting of the tax. Under these circumstances, the indenture trustee merely holds a security interest on behalf of the lenders. The owner/lessor in this case merely has assigned the collection responsibility as contrasted to the situation in which a trust is created for the purpose of holding ownership and collecting rents. 3/15/89.