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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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L


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

Annotation 330.2889

(a) In General


330.2889 Supervision by Lessor. In order for the owner of equipment to be regarded as providing services rather than leasing the equipment, the owner must not only furnish and supervise the use of the equipment, he or she must actually operate the equipment. Thus, the furnishing of oil drilling equipment which is operated by the customer's employees is a lease notwithstanding that supervision is provided by the seller. 12/28/70.