Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 21 - Rentals and Leases of Tangible Personal Property (Including Motor Vehicles and Lock Boxes) (280-RICR-20-70-21)
Section 280-RICR-20-70-21.5 - Definitions
Universal Citation: 280 RI Code of Rules 20 70 21.5
Current through September 18, 2024
A. "Lease or Rental" means any transfer of possession or control of tangible personal property including motor vehicles for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.
1. Lease or rental includes agreements
covering motor vehicles and trailers where 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. § 770(h)(1).
2. "Lease or rental"
does not include:
a. 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;
b. 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 or one percent of the
total required payments;
c.
Providing tangible personal property along with an operator for a fixed or
indeterminate period of time. A condition of this exclusion is that the
operator is necessary for the equipment to perform as designed. For the purpose
of this subsection, an operator must do more than maintain, inspect, or set-up
the tangible personal property.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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