Loading...
(a) Certain Rentals, Leases and Licenses for Use in Connection With Construction Contracting. Rental, leasing or licensing of earth-moving equipment with an operator shall be deemed construction contracting activity. Rental, leasing or licensing of any other tangible personal property (with or without an operator) or of earth-moving equipment without an operator shall be deemed rental, leasing or licensing of tangible personal property. For example:
(1) Rental of a backhoe, bulldozer or similar earth-moving equipment with operator is construction contracting. Rental of these items without an operator is rental of tangible personal property.
(2) Rental of scaffolding, temporary fences or barricades is rental of tangible personal property.
(3) Rental of pumps or cranes is rental of tangible personal property, regardless of whether or not an operator is included with the equipment rented.
(b) Distinction Between Equipment Rental, Leasing or Licensing for Use and Transporting for Hire. The hiring of mobile equipment (cranes, airplanes, limousines, etc.) is considered rental, leasing or licensing of tangible personal property whenever the charge is for a fixed sum or hourly rate. By comparison, the activity of a common carrier conveying goods or persons for a fee based upon distance, and not time, shall be considered transporting for hire.
(Ord. No. 6674, § 3, 3-23-87)
(a) Membership, admission or other fees charged by any rental club or limited-access lessor are considered part of taxable gross income.
(b) Gross income from rental, leasing or licensing for use of tangible personal property must include all charges by the lessor to the lessee for repair, maintenance or other service upon the tangible personal property rented, leased or licensed.
(c) Sale of a warranty, maintenance or service contract as a requirement of, or in conjunction with, a rental, leasing or licensing contract is exempt.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 8784, § 29, 12-2-96)
In cases where the tangible personal property is rented, leased or licensed with an operator provided by the lessor, the charge for the operator shall not be includable in the gross income from the rental, lease or license of such tangible personal property if the charge for the operator and the charge for the use of the equipment are separately itemized to the lessee and separately maintained on the books and records of the lessor.
(Ord. No. 6674, § 3, 3-23-87)
(a) The term "semi-permanently or permanently installed" means that the item of tangible personal property has and is expected to have at the time of installation a permanent location at the site installed, as under a long-term lease agreement, except that the person using or applying said property may eventually replace it because it has become worn out or has become obsolete or the person ceases to have the right to possession of the property.
(b) An item of tangible personal property is deemed permanently installed if its installation requires alterations to the premises.
(c) Examples of "semi-permanently or permanently installed tangible personal property" include but are not limited to computers, duplicating machines, furniture not of portable design, major appliances, store fixtures.
(d) The term does not include mobile transportation equipment or tangible personal property designed for regular use at different locations, as under numerous short-term rental, lease or license agreements, whether or not such property is in fact so used.
(1) For example, use of a mobile crane, trencher, automobile or other similar equipment shall be considered a rental, lease or license transaction subject to taxation only by the city or town in which such business office of the lessor is based.
(2) Other similar examples include but are not limited to camping equipment, contracting equipment, chain saw, forklift, household items, invalid needs, janitorial equipment, reducing equipment, furniture of portable design, trucks or trailers, tools, towbars, sump pumps, arc welders.
(e) A rental, lease or license agreement which specifies that the item in question shall remain, under the terms of the agreement, located within the same city or town for more than one hundred eighty (180) consecutive days shall be sufficient evidence that such rented, leased or licensed item is "permanently or semi-permanently installed" in the city or town, except when the item is mobile transportation equipment or one of the other types of portable equipment or property described in subsection (d) above.
(Ord. No. 6674, § 3, 3-23-87)
(b) Gross income from the sale of a warranty, maintenance or similar service contract in connection with the rental, leasing and licensing of tangible personal property shall be exempt.
(c) Separately stated charges for repair not included as part of a warranty, maintenance or similar service contract relating to the rental, leasing or licensing of tangible personal property are exempt from the tax imposed by section 19-450; however, such income is subject to the provisions of sections 19-460 and 19-465, and the provisions of regulation 19-465.1.
(Ord. No. 6938, § 27, 4-25-88; Ord. No. 8784, § 30, 12-2-96)
Gratuities charged by or collected by persons subject to the tax imposed by section 19-455 may be excluded from gross income if:
(1) Such charge is separately stated upon the bill, invoice, etc., provided the customer, and such amounts are maintained separately in the books and records of the taxpayer; and
(2) Such gratuities are distributed in total to employees of the taxpayer in addition to customary and regular wages.
(Ord. No. 6674, § 3, 3-23-87)
Loading...