In a recent decision, the state ruled that a business which leased equipment and later assigned its rights to the leases to third parties was responsible for all sales tax due on the leases, even if the leases were assigned at a discount. The lessor who assigns its right to collect lease payments from a third party must report the tax due on all of the remaining lease payments at the time the lease is assigned. In addition, the lessor could not avoid tax liability by claiming the taxes were paid by the assignees. The assignees were not responsible for remitting the tax, but could retain amounts designated on tax on lease payments to reimburse themselves for amounts paid in error. (Decision, Hearing No. 45,095, Texas Comptroller of Public Accounts, July 12, 2006.)