2006 Kentucky Revised Statutes - .120   "Sale" -- "Lease or rental."  

139.120 "Sale" -- "Lease or rental." (1) "Sale" means, the furnishing of any services included in KRS 139.200 and any transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration, and includes: (a)  The producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for purchasers who furnish, either directly or indirectly, the materials used in the producing, fabricating, processing, printing or imprinting; (b)  A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price; (c)  A transfer for a consideration of the title or possession of tangible personal property which has been produced, fabricated or printed to the special order of the purchaser. (2) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental shall include future options to purchase the property or extend the terms of the agreement and agreements covering 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. sec. 7701(h)(1). "Lease or rental" shall 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 the 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; and (c)  Providing tangible personal property and an operator for the tangible personal property for a fixed or indeterminate period of time. To qualify for this exclusion, the operator must be necessary for the equipment to perform as designed, and the operator must do more than maintain, inspect, or setup the tangible personal property. These definitions shall apply regardless of the classification of a transaction under generally accepted accounting principles, the Internal Revenue Code, or other provisions of federal, state, or local law. Effective: July 1, 2004 History: Amended 2003 Ky. Acts ch. 124, sec. 4, effective July 1, 2004. -- Amended 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 7, effective August 1, 1985. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 11, effective February 5, 1960. Legislative Research Commission Note. Acts 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 11, directed that the provisions of this section would be effective August 1, 1985.