When a lessee is required under a contract lessor to reimburse the lessor for the depreciated value of any item lost or not returned by the lessee, the transaction is not a retail sale; therefore, no sales tax is due. (See State of Alabama v. Industrial Uniform Services Inc.)

Statutory Authority: Code of Ala. 1975, §40-23-31.

History: Adopted June 12, 1978.)