Effective January 1, 2008, Tennessee has amended the definition of a lease or rental for sales and use tax purpose in accordance with requirements under the Streamlined Sales and Use Tax Agreement. The amended definition does not include transfers of property under an agreement that requires the transfer of title upon completion of all payments and the payment of an option price that does not exceed the greater of $100 or 1% of the total payments. The new definition applies to leases entered into on or after January 1, 2008, and will have no impact on existing leases or rentals. The prior definition applies to options to purchase or extend included in agreements entered into prior to January 1, 2008. (Important Notice No. 07-15, Tennessee Department of Revenue)