A. Only the first $1,000 of each transaction shall be subject to sales tax; provided, that a single payment for the sale or rental of property or rendering of a service over a period exceeding one month shall be allocated pro rata to each one-month period or part thereof during the term of the transaction, and the first $1,000 of the price allocated to each such period shall be subject to sales tax.

B. Services Rendered Over One Month. The payment of rent, whether for real or personal property, in excess of $1,000 and for more than one month shall be treated as separate transactions covering the rental for one month each. A transaction involving payment for services to be rendered or delivered over a period of more than one month for a consideration in excess of $1,000 shall be treated as a separate transaction occurring each month over the period of time that the service is rendered.

C. Short-Term Rentals. Each night of each individual room rental shall be considered a separate transaction and therefore the maximum tax computation shall be calculated on a per room per night basis.

D. Capital Leases. Contracts to purchase the property at the end of a lease shall be treated as a sale on the effective date of the contract and are subject to the maximum tax per transaction pursuant to subsection (A) of this section.

E. Other Lease Types. Leases that have an option to purchase at the end of the lease are taxed on the principal amount of each lease payment for the term of the lease. If the purchase is made at the end of the lease, the purchase transaction would be treated as another separate transaction. Interest and financing charges related to the lease payment are not subject to tax.

F. Installment Payments. When payments for a single transaction are made on an installment basis, the sales tax on the transaction shall be collected on the first payment. (Ord. 21-020 § 4, 2021; Ord. 20-002 § 3, 2020)