- 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 separately 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 property are not subject to tax under the retail classification.
Historical Note
New Section renumbered from R15-5-101 by exempt rulemaking at 25 A.A.R. 3010, effective October 1, 2019 (Supp. 19-3). Paragraph pagination error corrected under subsection (C) at the request of the Department, File No. R21-127 (Supp. 21-3).