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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.2484

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

Annotation 330.2484

(a) In General

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330.2484 Option to Purchase. A lessor of musical instruments, reporting tax based on rental receipts, allows lessees to apply up to six months of rental payments to the sales price of the instrument when the lessee exercises his option to purchase. The sales price of the instrument pursuant to Regulation 1660(c)(7) is the amount required to be paid by the purchaser upon the exercise of the option. This applies whether or not instrument purchased was the one that the purchaser had been leasing. The seller is allowing a discount or price adjustment to the selling price of the article and the net amount required to be paid by the purchaser is subject to tax. 6/28/72.