Ariz. Admin. Code § R15-5-1512 - Lease - Purchase Agreements
A.
A lessor's gross income from the leasing of tangible personal property that
includes an option to purchase the tangible personal property is taxable under
the personal property rental classification until the lessee exercises the
purchase option.
B. Gross income
received after the lessee exercises the purchase option is taxable under the
retail classification.
Notes
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