In a private letter ruling clarification, the Kansas Department of Revenue addressed the taxability of leases of tangible personal property other than transportation equipment. For leases in which period payments are made, “destination-based” rules apply to the first payment only. Subsequent payments are sourced to the primary property location. In addition, the State reiterated that leases were taxable with no deduction for charges related to the fulfillment of the contract, even if the charges were separately-stated. Examples of these included charges include insurance, taxes, service contracts, handling, administration, late fees and service charges, among others. (Private Letter Ruling No. P-2006-010, Kansas Department of Revenue, revised October 25, 2006)