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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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330.0000 Leases of Tangible Personal Property—In General—Regulation 1660
Annotation 330.2888
(a) In General
330.2888 Sublessee Bound by Terms of Prime Lease. A prime lease of car washing fixtures provides that the fixtures shall be personal property and that the lessor has the right of removal of the property. The lessee subleases the realty together with the car washing fixtures. The sublease does not contain the clause as to the fixtures remaining personal property. The provisions of a sublease are subservient to the provisions of the original if the terms are conflicting. The fixtures are by contract personal property in the hands of the lessee/sublessor. Thus they must remain so in the hands of the sublessee. Accordingly, the lease receipts are from leases of tangible personal property rather than leases of realty. Tax, if any, applies in accordance with Regulation 1660. 11/7/75.