DRS: Ruling 89-275, Resale

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

Ruling 89-275

Resale


The total gross receipts for the lease or rental of tangible personal property is subject to sales and use tax. A lessor may purchase tangible personal property he or she uses exclusively for leasing purposes without payment of the sales and use tax by issuing a valid resale certificate to the seller.

In the situation described in your letter, a leasing company is selling its assets, which include equipment and leases of said equipment to another leasing company that is engaged in the same business. The sale of the assets, equipment and leases of said equipment, is not taxable provided the leasing company purchasing the assets issues a valid resale certificate to the leasing company selling the assets.

 

LEGAL DIVISION

December 12, 1989