Why is there sales tax on property tax?

Under the terms of the lease, a lessee is reimbursing us for property taxes paid on the lessee’s behalf. Many states consider this reimbursement as a taxable gross receipt for sales tax purposes. In these instances, we are required to collect and remit sales tax on this taxable gross receipt.

Still need help?

If you own the equipment, why does the lessee have to pay property taxes?

Under the terms of the lease agreement, the lessee agreed to reimburse us for any such taxes paid on.

Why is the lessee billed for property taxes when the lessee did not own the equipment for a full year?

Each taxing jurisdiction has a different lien date or fiscal start date for the year. There are 4 di.

What is a tax true-up?

A true-up is when we reconcile the estimated taxes paid by the lessee to the actual tax billed by th.

Why is the lessee billed or refunded for a property tax true-up?

The property tax true-up is the reconciliation of actual property taxes paid by us on the leased equ.

Who is the legal owner of my leased equipment, and who pays business personal property taxes on it?

We, as the owner of the leased equipment, is required to report all leased equipment, even if the eq.

Why do you charge taxes when other leasing companies do not?

Other companies do charge their customers taxes usually by building the cost into the lease factor r.

Can you fax or mail me a copy of the actual tax bill?

The property tax bill we receive contains information on all leased equipment in a given jurisdictio.

How do you calculate the tax estimate?

We use tax software that is used by many leasing companies to compute the tax estimate. The software.

Why is the lessee billed taxes on a lease?

Each jurisdiction that collects personal property taxes, taxes the owner of the equipment. We are th.

Why was I charged sales tax even with an exemption certificate?