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BTLG Table of Contents > Sales and Use Tax Annotations > L > 330.0000 Leases Of Tangible Personal Property—In General > Annotation 330.5055

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

Annotation 330.5055

(e) Sales and Leaseback Transactions

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330.5055 Ninety Days of First Functional Use. When a person acquires tangible personal property tax paid and enters into a sale and leaseback arrangement within 90 days of the person's first functional use of the property, the sale/leaseback comes within the provision of section 6010.65.

In addition, if the lessor thereafter sells its interest in the property (including an assignment of the lease contract, together with transfer of title to the property) to a third party investor within the same 90-day window period (i.e., within 90 days of the original purchaser's first functional use of the property), this transfer also would fall within the provisions of section 6010.65 and would be classified as neither a sale nor a purchase. 1/12/94.