Section R15-5-101. Sales for Resale or Lease

A.      Gross receipts from the sale of tangible personal property to be resold by the purchaser in the ordinary course of business are not subject to tax under the retail classification.

B.       Gross receipts from the sale of tangible personal property to be leased by a person in the business of leasing such personal property are not subject to tax under the retail classification.

C.      Gross receipts from the sale of tangible personal property to a lessor of real property are subject to tax if:

1.        The tangible personal property is incorporated into, or leased in conjunction with, the real property; and

2.        The rental of the tangible personal property is not sepa- rately stated as part of the real property lease transaction.

D.      Gross receipts from the sale of repair or replacement parts for tangible personal property that is to be leased by a person engaged in the business of leasing such tangible personal prop- erty are not subject to tax under the retail classification.

Historical Note

Amended effective November 7, 1978 (Supp. 78-6). Renumbered from R15-5-1811 and amended effective August 9, 1993 (Supp. 93-3). Amended by final rulemak-

ing at 12 A.A.R. 4099, effective December 4, 2006

(Supp. 06-4).

taxable under the retail classification.

Historical Note

Adopted effective August 9, 1993 (Supp. 93-3).