Tax Type
Retail Sales and Use Tax
Description
Future Use for Rental; Replacement or Revised Parts Manuals
Topic
Taxability of Persons and Transactions
Date Issued
10-30-1990
October 30, 1990
Re: Request for Ruling: Sales and Use Tax
Dear**********************
This has reference to my response to you dated July 2, 1990 regarding the applicability of the retail sales and use tax to parts manuals for equipment which your company leases. Please be advised that page 2 of the July 2 ruling requires correction.
On Page 2, the beginning of line 5 through the second paragraph should be deleted and replaced with the following:
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- or included with leased equipment. A parts manual is treated in the same manner as repair parts for tax purposes. Repair or replacement parts purchased by the Taxpayer for installation on leased or rented equipment may be purchased under certificates of exemption, provided it is included in the lease price. However, repair and replacement parts which are installed on equipment which is not held for sale, lease or rental are subject to the tax.
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- In this instance, the parts manual is included in the lease price of the equipment. Thus, the Taxpayer is not required to pay the sales tax on replacement parts manuals purchased from its vendors.
The department regrets any inconvenience which may have been caused by this error.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner