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Business Taxes Law Guide—Revision 2024

Transactions and Use Tax Annotations


800.0000 Application of Transactions (Sales) Tax and Use Tax—Regulation 1823

Annotation 800.0023


800.0023 Lease of MTE Vehicles. Where a vehicle is purchased ex-tax as mobile transportation equipment and a timely election is made to pay use tax measured by the fair rental value of the vehicles, the applicable tax rate is the rate in effect in the county in which the lease first commences. If the vehicle is delivered to the lessee for use in the lessee's county, the lease first commences in that county and the total use tax rate in effect in that county applies to the fair rental value, including any district use taxes. On the other hand, if the lessee takes delivery in the lessor's county, the lease first commences in the lessor's county and the total tax rate in effect in the lessor's county applies to the fair rental value, including any district use taxes, regardless of where the lessee later uses the vehicle. 8/6/85.