NAC372.944. Sale of tangible personal property designated as lease or rental for purpose of retaining security interest.

If tangible personal property is sold, but the transaction is designated as a lease or rental for the purpose of retaining a security interest in the property, the transaction constitutes a sale and the tax applies to the transaction in the same manner as a conditional sale described in NAC 372.050. A security interest is created in the property if the transfer of possession or control of the property is made under:

     1. A security agreement or plan for deferred payment that requires the transfer of title upon completion of the required payments; or

     2. 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 $100 or 1 percent of the total required payments.

     (Added to NAC by Tax Comm’n by R105-09, eff. 11-25-2009)