"Lease" or "rental"
Sec. 21. (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.
As added by P.L.257-2003, SEC.12. Amended by P.L.97-2004,
SEC.25.
Last modified: May 28, 2006