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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.2307

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

Annotation 330.2307

(a) In General

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330.2307 Lease of Racing Qualities of Horse. A person, who owns 50 percent of a horse, "leases" the horse's racing qualities to the other owner of the horse. The rent is to equal 50 percent of all purses won by the horse, less 50 percent of the expenses. The "lessee" is to have control over the racing performance of the horse, and has the right to have the horse raced under its name and color.

In this case there is no "lease," "sale" or "purchase" because there is no consideration paid for the "lease". The "lessor" was 50 percent owner before the "lease" was entered into and already had the right to 50 percent of all income earned by the horse plus the responsibility for 50 percent of all expenses. 3/18/92.