The Missouri Administrative Hearing Commission concluded that a Missouri car dealership was not liable for sales tax on loaner vehicles that it provided to its customers. Since the car dealership never owned or leased the loaner vehicles, there was no basis on which to charge sales tax. The loaner vehicles were provided pursuant to rental agreements between the customers and a separate rental company. The taxpayer’s argument, that it leased the loaner vehicles in order for them to be re-leased to its customers, and therefore, not subject to tax, was rejected. However, in this case, there was only one lease transaction and in order for the resale exemption to apply, a “sale” and a subsequent “resale” is required. The lease agreement was between the rental company and the customer. Therefore, the taxpayer was not liable for sales tax. (Major Cadillac Co., Inc. v. Director of Revenue, Missouri Administrative Hearing Commission, No. 04-1521 RS, December 6, 2007)