Section 350-20-006 - LEASED PERSONAL PROPERTY006.01 All leased taxable personal property shall be listed and returned as required by law by the lessor as owner or lessee as agent, at the lessor's Nebraska adjusted basis and date of acquisition. If a lessee is unable to list and return an item of leased property because the Nebraska adjusted basis cannot be determined, the lessee shall file a description of the property and the name and address of the lessor. The filing by a lessee as herein provided shall not satisfy the requirements for listing and returning taxable personal property provided by Reg-20-002. 006.01A Contracts made between lessor and lessee shall not be recognized by taxing officials in determining tax responsibility. A assessor may require the listing of leased taxable personal property by the lessor as owner and lessee as agent, if it is deemed necessary to secure compliance with the law.006.01B Tangible personal property leased by tax exempt entities shall be subject to personal property taxation at its net book value.006.02 Situs of leased personal property is addressed in Reg-20-004.006.03 A lease does not include a transaction intended to finance a purchase, even though the signed agreement is called a lease. Such a transaction is a form of conditional sale and not a lease. When a conditional sale exists, ownership of the personal property is deemed to rest with the lessee/buyer. The tax status of the lessee/buyer will determine the taxability of the property. A conditional sale is an agreement that has one or more of the following characteristics: 006.03A The lease is characterized as a capital lease rather than an operating lease under generally accepted accounting principles;006.03B Portions of the periodic payments are attributable to an equity to be acquired by the lessee;006.03C The lessee/buyer is bound for a fixed term and is to obtain title at the end of the lease, or has an option to buy for a nominal amount;006.03D The agreed periodic payment materially exceeds the current fair rental value of the item; or006.03E A portion of the payments are identified or readily identifiable as interest.350 Neb. Admin. Code, ch. 20, § 006