Nev. Admin. Code § 372.928 — 372.928

NAC 372.928    Sale of tangible personal property designated as finance lease. ( NRS 360.090 , 372.170 ,
372.240 ,
372.725 )
1.  If tangible personal property is sold,
but the transaction is designated as a finance lease:
(a) The transaction is a sale;
(b) The tax applies to the transaction in the same
manner as a conditional sale described in NAC
372.050 ;
(c) The lessee is deemed to be the purchaser of the
tangible personal property; and
(d) If applicable, the purchaser may elect,
pursuant to NRS 372.170 or 372.240 , to pay the tax on the use
of that property as measured by the amount of the rental charged for the
property rather than the cost of the acquisition of that property.
2.  For the purposes of this section, a
transaction is a finance lease if the only use of the tangible personal
property that the lessee is authorized to make pursuant to the lease is the
leasing of the tangible personal property as a sublessor to another party as a
sublessee. If the lessee uses or has the right to use the tangible personal
property in any other manner, the transaction is not a finance lease. The
following factors indicate that a transaction is a finance lease:
(a) The lessee never had possession of the tangible
personal property; and
(b) The lessee is required, pursuant to the lease,
to:
(1) Pay any applicable fees assessed against
the tangible personal property;
(2) Assume all risk of loss of the tangible
personal property; and
(3) Maintain insurance on the tangible
personal property.
3.  As used in this section, “possession”
does not include the maintenance, licensing or registration of the tangible
personal property.
(Added to NAC by Tax Comm’n by R058-02, eff. 1-17-2003)—(Substituted
in revision for NAC 372.086)