§ 6-2.5-1-21 — "Lease" or "rental"

Indiana § 6-2.5-1-21

• Jurisdiction: Indiana
• Art. 2.5: STATE GROSS RETAIL AND USE TAXES
• Ch. 1: Definitions

Text

(a) "Lease" or "rental" means any transfer of
possession or control of tangible personal property for a fixed or
indeterminate term for consideration and may include future options to
purchase or extend. "Lease" or "rental" does not include:
(1) a transfer of possession or control of property under a security
agreement or deferred payment plan that requires the transfer of
title upon completion of the required payments;
(2) a transfer of possession or control of property under an
agreement that requires the transfer of title upon completion of
required payments and payment of an option price that does not
exceed the greater of one hundred dollars ($100) or one percent
(1%) of the total required payments; or
(3) providing tangible personal property along with an operator
for a fixed or indeterminate period, if:
(A) the operator is necessary for the equipment to perform as
designed; and
(B) the operator does more than maintain, inspect, or set up the
tangible personal property.
(b) "Lease" or "rental" includes agreements covering motor vehicles
and trailers in which the amount of consideration may be increased or
decreased by reference to the amount realized upon sale or disposition
of the property as defined in 26 U.S.C. 7701(h)(1).
(c) The definition of "lease" or "rental" set forth in this section
applies throughout this article, regardless of whether a transaction is
characterized as a lease or rental under generally accepted accounting
principles, the Internal Revenue Code, the uniform commercial code
(IC 26-1), or other provisions of federal, state, or local law.
(d) This section applies only to leases or rentals entered into after
June 30, 2003, and has no retroactive effect on leases or rentals entered
into before July 1, 2003.

Legislative History

As added by P.L.257-2003, SEC.12. Amended by P.L.97-2004, SEC.25.