Okay, change “lease” to “personal lease”. So sorry.
They don’t, anywhere, as far as I can tell:
I think they are using an extremely simple definition here. Lease payments are, at their core, finance charge and deprecation. You can amortize things into a lease, which become part of deprecation, such as a warranty.
If we read
- The term “any down payments” as used in this subparagraph shall mean cash collected from the lessee at the inception of the lease which shall include cash supplied as a capital cost reduction; shall not include rebates, noncash credits, or net trade allowances; and shall include any upfront payments collected from the lessee at the inception of the lease except for taxes or fees imposed by law and monthly lease payments made in advance; or
This to me means simply, if a lease payment is $800/mo, and $600/mo is deprecation and $200/mo is rent charge, and the customer paid $2,500 down + Registration Fee + 1st month at signing, then the taxable amount would be (60036).07 + 2,500*.07 = TAVT, as the registration fee is imposed by law.