Section R15-5-1502. General

A.      Gross income derived from the rental of tangible personal property is included in the tax base under the personal property rental classification unless a specific statutory exemption, exclusion, or deduction applies. Examples of tangible personal property include: televisions, cars, trucks, lawnmowers, floor polishers, tuxedos, uniforms, furniture, towels, and linens.

B.       In this Article, the terms “lease,” “rental,” and “leasing” are used synonymously.

C.      Gross income from the lease of tangible personal property to a lessee who subleases the property is not taxable under the per- sonal property rental classification if the lessee is engaged in the business of leasing the property under the personal prop- erty rental classification.

D.      Gross income from the rental of tangible personal property includes charges for installation, labor, insurance, mainte- nance, repairs, pick-up, delivery, assembly, set-up, personal property taxes, and penalty fees even if these charges are billed as separate items, unless a specific statutory exemption, exclu- sion, or deduction applies.

Historical Note

Amended subsection (D) and added subsection (E) effec-

tive March 18, 1981 (Supp. 81-2). Amended by final

rulemaking at 6 A.A.R. 3091, effective July 18, 2000

(Supp. 00-3).