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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 335.0015
335.0015 Debris Boxes. A taxpayer purchased 20 yard debris boxes ex-tax and leased them to a garbage company. In turn, the garbage company rented them to users for a daily rate which included drop-off, removal and disposal of the contents.
Although the debris boxes do not have attached running gear and are not registered under relevant vehicle codes, they can only be transported on specialized self-loading truck chassis. Each time a debris box is moved, it essentially becomes the body of a dump truck. These debris boxes are "reusable cargo containers" within the meaning of section 6023 and are mobile transportation equipment The taxpayer owes use tax measured by the purchase price, unless a timely election to pay tax measured by fair rental value was made. 9/14/89.