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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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R


490.0000 Returns, Defects and Replacements—Regulation 1655

Annotation 490.0200

(a) Returned Merchandise

(2) "Full Sale Price"


490.0200 Repossession. Sale of a freezer and a substantial amount of food on a conditional sales contract was made with a down payment which was less than the price of the food. Upon default in payment of installments, seller repossessed the freezer within 90 days, but could not repossess the food. Seller contended that by foregoing the balance owed on the contract he had returned the full sale price of the freezer to the purchaser. The contract was silent as to the application of the down payment toward either the freezer or the food.

Under these circumstances, down payment is applied pro rata to the sale price of each and the seller has not refunded the full price of the freezer. 11/19/53.