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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.3575

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

Annotation 330.3575

(b) Rental Receipts—Items Included and Excluded

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330.3575 Termination Fee. When a lease contract requires the lessee to pay the lessor a "termination fee" at the end of the lease term, the "termination fee" is usually merely an additional final rental payment. Such a fee is subject to the use tax. Even if the lessee is advised that the fee covers costs associated with processing the lease payoff, this is merely an overhead expense that cannot be deducted from taxable rentals whether separately itemized or not. 6/10/94. (Am. 2008–1).