When a company undertakes a financing transaction, federal and state income tax considerations most frequently take priority in the tax department. In certain financing transactions, however, one would be remiss to ignore potential sales tax issues that can be traps for the unwary.

Reprinted from the Journal of Multistate Taxation and Incentives (Thomson Reuters/Tax & Accounting) Volume 25, Number 10, view this article for sales tax considerations a taxpayer should consider when a company engages in these common financing transactions.