Laws, Regulations & Annotations

B

205.0000 BUSINESS INVENTORY EXEMPTION

Annotation 205.0250

205.0250 Retailing. The following types of property are eligible for the exemption:

1. Gold held by a dealer for sale in the ordinary course of business.

2. Merchandise in vending machines.

3. Consigned goods held for sale.

4. Farm or construction equipment, previously used by a farmer or contractor, under consignment to an auctioneer for sale.

5. Trading stamps in the hands of the trading stamp company.

6. Display items, unless they have been altered to the point where it is unlikely that they will be sold.

7. Returnable soft drink bottles or beer kegs held by the bottler when title to the bottles or kegs passes to the retailer.

8. Nonreturnable bottles and other containers if title thereto passes to the purchasers.

9. Salesmen's samples, if items are sold from the samples or if the samples are periodically rotated and returned to stock for sale.

The following types of property are ineligible:

1. Gold held by individuals or dealers as an investment in anticipation of price increases.

2. Merchandise from a discontinued business stored in a garage.

3. Merchandise from a discontinued business stored while the owner attempts to have the manufacturer accept return of the merchandise.

4. Farm or construction equipment held and advertised by a farmer or contractor for sale as a means of disposing of old or excess equipment.

5. Trading stamps held by a retailer for distribution with the sale of his goods.

6. Returnable soft drink bottles or beer kegs held by the bottler when title to the bottles or kegs remains with the bottler.

7. Office equipment that is removed from inventory and used by the retailer for a period of time. The equipment remains ineligible for the exemption until such time as the retailer is no longer using the equipment and returns it to an inventory for sale status. LTA 4/25/1980 (No. 80/69).