Types of transactions
Leased in substantially the same form as acquired by the prime lessor.
What is a sublease?
Lessee is liable for tax on lease receipts measured by rentals payable whether or not lessee pays tax to the lessor.
How are bad debts handled?
The lessee is liable for reporting district tax.
What if the lessor does not report district tax?
Railroad cars, buses, trucks, reusable cargo containers, aircraft, vessels and component parts.
Property acquired as gift
When is tax always due on lease receipts?
Rental receipts should be allocated between the taxable and non taxable portions of the sale
What is a bundled lease?
Tax is due on rentals and offset is allowed on tax paid purchases but audio tapes are taxable
What is the tax application for video cassettes, videotapes and video disks?
Payments are subject to statewide use tax
When are most leases subject to district tax?
Equipment used only in loading and unloading persons or property
What is not MTE?
Property acquired for a retailer tax paid
When is no tax due?
Tax paid on purchase price: Tax due by lessor on cost of fuel
What is a MTE wet rental?
Special tax treatment applies if used as a residence
What is a mobile home?
Allocate county wide to the county in which the property is being used by the lessee and tax is due on lease receipts.
Passenger vehicles and one way rental truck.
What specifically excluded as MTE?
Property is acquired with a resale certificate or from an out of state retailer and the item is not leased in the same form as acquired by lessor
When does tax apply to lease receipts?
When each transaction is dependent and conditional on the other and does not have legitimate business purpose, the nature of the transaction is viewed as a whole.
What is a step transaction?
What is a lease of real property?
Lessee is liable for district tax
What happens when the lessor does not report district tax?
Airplane navigation system
What is an MTE component part?
The lessee has a nominal purchase option. Option price is nominal if it does not exceed $100 or 1% of the total contract price, whichever is the lesser amount.
What is a condition sale?