Laws, Regulations and Annotations
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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 335.1005
335.1005 Lessee/Sublessor of Pick-up Trucks. Pick-up trucks leased by the manufacturer to a dealer who subleases them to the U.S. Forest Service with no tax paid by either the lessor or the lessee/sublessor are subject to use tax on the cost because a timely election to pay use tax measured by rental receipts was not made. Since a pick-up truck is clearly within the definition of MTE, the use being taxed is not the use by the United States but the use by the lessor. Therefore, tax is due from the prime lessor (the manufacturer) and not from the sublessor. 6/13/85.