2015 Nevada Revised Statutes
Chapter 360B - Sales and Use Tax Administration
NRS 360B.450 - “Lease or rental” construed.

1. Except as otherwise provided in this section, “lease or rental” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. The term:

(a) Includes future options to purchase or extend;

(b) Excludes:

(1) A transfer of possession or control under a security agreement or plan for deferred payment that requires the transfer of title upon completion of the required payments;

(2) A transfer of possession or control 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 $100 or 1 percent of the total required payments; and

(3) The provision of tangible personal property together with an operator for a fixed or indeterminate period, if the operator:

(I) Is necessary for the property to perform as designed; and

(II) Does anything more than maintain, inspect and set up the property; and

(c) Includes agreements covering motor vehicles and trailers pursuant to which the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property, as described in 26 U.S.C. § 7701(h)(1).

2. The provisions of subsection 1:

(a) Apply 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 or any other provisions of federal, state or local law.

(b) Do not apply to any leases or rentals existing on June 15, 2005.

(Added to NRS by 2005, 1769; A 2007, 98)