Under the exemption provided, which scenario would qualify?

• A. The sprinkler system is installed for the owner's use and does not offer for sale or lease within 1 year
• B. The sprinkler system is installed for a property that will be offered for sale within 1 year
• C. The system is installed by a contractor with resale within 1 year
• D. The exemption applies regardless of sale status

Answer: (A)

The exemption hinges on ownership use and sale/lease timing. It applies when the sprinkler system is installed for the owner's own use and there is no plan to offer the property for sale or lease within one year. That matches the scenario where the system serves the owner's occupancy and isn’t tied to a sale within the 12-month period.

The other situations involve an intended sale or resale within a year, which means the exemption wouldn’t apply because the property isn’t being kept for owner use without a sale/lease in the near term. Saying the exemption applies regardless of sale status contradicts the condition that sale or lease activity within a year affects eligibility.