A municipal lease or lease-purchase agreement is an installment purchase, conditional sale or lease with an option to purchase for nominal value. It may also be referred to as a municipal lease.
A State or political subdivision qualifies for tax exempt leasing. Political subdivisions include cities, towns, counties and other municipalities. They may include other state entities such as school districts, special purpose districts (fire, parks, utility, water, etc.), hospitals agencies, authorities, boards and commissions.
Yes, a VFD purchasing fire apparatus or building or remodeling a fire station qualifies for lower, tax exempt rates. Equipment such as SCBAs, turnout gear, rescue tools and ambulances do not qualify for the same rate.
A non-appropriation clause enables the Lessee to terminate the lease agreement at the end of the current appropriation period without further obligation or penalty. This may be done only in cases where the Lessee was unable to obtain funding for future payment obligations on the lease. Typically, the clause will contain a “best efforts” requirement whereby the Lessee must use its best efforts to obtain the necessary appropriation for the lease payments. The non-appropriation clause enables the Lessee to account for the lease obligation as a current expense instead of debt.
Our minimum transaction is $10,000.
The Lessee owns the equipment under a municipal lease. Vehicles are titled in the Lessee’s name with the Lessor listed as lienholder. On equipment, a UCC is filed with the Lessor listed as the secured party.
Yes, the agreement can be prepaid at any time. Each agreement includes a payment schedule reflecting principal, interest and the payoff amount after each payment has been paid.
Absolutely! The term we can offer will be determined by the age of the vehicle or equipment.