In re: Aaron's Inc.

ZACHARY, Judge.

*21 Aaron's, Inc. ("Taxpayer") appeals from the Final Decision of the North Carolina Property Tax Commission determining that property in the physical possession of Taxpayer's customers pursuant to "Lease Purchase Agreements" is subject to ad valorem taxation. Taxpayer argues that such property constitutes "inventories owned by retail and wholesale merchants," and is thus exempt from taxation pursuant to *433 N.C. Gen. Stat. § 105-275 (34). We disagree, and affirm the Final Decision of the Commission.

Background

Taxpayer is a multi-state business with a location in Sampson County at…