(1) Once a lease agreement is consummated pursuant to a dealer lease program, that equipment is not a part of the dealer's inventory. Each party to the lease transaction is obligated to report the equipment on the department's property reporting form. The appropriate party, based on a Uniform Commercial Code (UCC) filing, shall be assessed property tax on the equipment for the term of the lease.

(2) Business equipment that is held by dealers, pursuant to a dealer rental program, is not a part of the dealer's inventory. The dealer shall report the equipment on the property reporting form provided by the department. The dealer shall be assessed property tax on the equipment for the full tax year.

(3) All business equipment that is part of a dealer sales program or a dealer demonstration program shall be considered a part of the dealer's business inventory.