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BTLG Table of Contents > Sales and Use Tax Annotations > L > 335.0000 Leases of Mobile Transportation Equipment > Annotation 335.0680

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L

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335.0000 Leases of Mobile Transportation Equipment— Regulation 1661

Annotation 335.0680

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335.0680 Fair Rental Value—Election Due Date. If MTE, including aircraft, is purchased ex-tax and leased, the tax on the lease is a use tax imposed on the lessor's use of the property. The lessor may report the tax incrementally by using the fair rental value, which is normally regarded as the amount received from the lessee. This option requires that the fair rental value election must be made on or before the due date of a return for the period in which the MTE is first leased, not for the period in which rental receipts are first received. If the lessor fails to report in the first period in which the MTE is leased, the measure of tax is the purchase price of the MTE. 5/8/85.