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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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L
335.0000 Leases of Mobile Transportation Equipment— Regulation 1661
Annotation 335.0012
335.0012 Concrete Pumping Equipment A corporation, engaged in manufacturing trailer and truck mounted concrete pumping equipment, believes that the concrete pumps are not mobile transportation equipment (MTE) because transportation is not the principal purpose for the trucks. The trucks are to support the pumping equipment and have to be modified to carry the pumping device. The drive shaft has to be replaced with a specialized drive shaft that will operate the pumping equipment as well as the truck. In addition, the equipment is used predominantly off the road and usually travels 50 miles or less between jobs. In summary, the corporation believes that the equipment is not designed for long distance transportation of persons or property at highway speeds.
The concrete pumps are not in themselves transportation equipment. They can be classified as MTE if they are or become a "component part of the trucks upon which they are carried." The pumps are permanently attached to the trucks and remain on the trucks when in use. Trucks are by statute defined as MTE. Once the pump is attached to the truck and becomes a component part of that truck, the pump becomes MTE. In this case, the trucks were capable of traveling at highway speed and were, in some cases, driven across the United States. 8/15/90.