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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.2305.200

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

Annotation 330.2305.200

(a) In General

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330.2305.200 Lease of Medical Records. As a preliminary step to the execution of a management agreement, a medical group sold all of its medical equipment and records to a health services company who in turn leased it all to the management firm, a related company. The equipment and the medical records remained in the possession of the medical group. Although separate lease payments were made for the equipment and the medical records, the latter amount was not reported on the health services company's sales tax report.

Although medical records may be valued for their intellectual content, they are clearly tangible items that may be seen, measured and weighed. Since the medical records themselves are useful to the physicians, their value is not limited to their intellectual content and the lease receipts are subject to tax pursuant to Regulation 1660. 7/29/92.