A. Only the first $500.00 of the price in each transaction shall be subject to sales tax; provided, that a single payment for the sale or rental of property, or the 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 $500.00 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 $500.00, 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 $500.00 shall be treated as separate transactions occurring one 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.
G. Product With Service Transactions. Sales of products and services in excess of $500.00 are exempt when the product and service are billed or invoiced together and the service is directly related or integral to the product purchased, such as delivery, installation, warranty or repair.
H. Service Transactions. Each separate service over $500.00 shall be exempt whether invoiced or paid individually or collectively for a period. The following are separate service transactions:
1. Services rendered intermittently.
2. Services rendered at multiple locations.
3. Services rendered to multiple persons. (Ord. 20-21 §§ 2, 3, 2020; Ord. 16-14 § 3, 2016; Ord. 01-38(SUB) § 2, 2001)