A taxpayer, a masonry contractor in Chicago, inquired about the application of Illinois’ new lease tax, effective January 1, 2025, regarding the sale and lease of construction equipment. They sought clarification on whether the tax rate should be determined by…
New Illinois, Louisiana and Maine Changes Effective January 1, 2025
New Illinois, Louisiana and Maine Changes Effective January 1, 2025
Illinois Updates Sales Tax Requirement for Leases
Effective January 1, 2025, Illinois will begin taxing lease transactions, which will bring Illinois more in line with most other states’ sales tax treatment of leases. Prior to January 1, 2025, Illinois opted to tax personal property at the time…
New York Tax Tribunal Finds Taxpayer Cannot Take Credits For Refunds Paid To Lessees
New York Tax Tribunal Finds Taxpayer Cannot Take Credits For Refunds Paid To Lessees
Florida Introduces Sales and Use Tax Exclusion for Certain Motor Vehicle Leases
Florida\’s Department of Revenue implemented a new sales and use tax exclusion for specific motor vehicle leases or rentals.
Maine Updates Rules for Timing of Sales Tax on Rental Equipment
Effective January 1, 2025, Maine has updated the definitions in their sales tax code to allow businesses who purchase property that will be rented to customers to use an exemption certificate.
Florida Further Decreases Sales Tax Rate on Commercial Rentals, Effective June 1, 2024
Florida’s state sales tax rate on the renting, leasing, letting, or granting a license to use real property (“commercial rentals”) decreases from 4.5% to 2.0%.
Arkansas Rules Leased Pallets Do Not Qualify for Resale Exemption
In November 2023, the Arkansas Tax Appeals commission released a ruling in a case that involves a taxpayer who filed petitions seeking relief from the denial of proposed refund claims related to sales and short-term rental taxes on pallets.
Florida Decreases Sales Tax Rate on Commercial Rentals
Florida’s state sales tax rate on the renting, leasing, letting, or granting a license to use real property (“commercial rentals”) decreases from 5.5% to 4.5%.
Michigan Updates Guidance on Taxability of Lease Transactions
Michigan has updated its guidance on the sales and use tax treatment of leases.
Maryland Enacts Tax on Rentals of Home Amenities
Effective July 1, 2024, Maryland has enacted legislation that imposes the state’s 6% sales tax on rentals of home amenities such as swimming pools and event spaces.
Utah Legislation Updates Peer-to-Peer Car-Sharing Regulations
A recently enacted Utah bill changes how motor vehicles involved in car-sharing platforms are taxed.
The Wacky World of Rental Tax
While accurate sales tax compliance is never impossible, those companies operating in the rental arena have several challenges unique to their business. In this blog, we will detail some of those challenges and the steps that rental companies must take to stay safe from significant audit exposure.
Utah to Impose Sales and Use Tax on Sales of Leased Personal Property Effective July 1, 2023
The Governor of Utah signed S.B. 14, a bill that was passed unanimously by the state Senate and House of Representatives, and which will impose the state\’s sales tax on charges for leases and rentals of personal property.
Out-of-State Car-Sharing Platform Not Responsible for Collecting Tax in Texas
Texas issued a private letter ruling stating that an out-of-state peer-to-peer car sharing platform (taxpayer) is not responsible for collecting and remitting Texas motor vehicle gross rental receipts tax since it is not the owner of the vehicles on the platform.
The State of New York Maintains that End-of-lease Adjustments for Fleet Cars are Not Eligible for a Sales Tax Refund
A fleet management company that leases fleets of vehicles to businesses in New York was told by an administrative law judge at the New York Division of Tax Appeals that it could not claim sales tax credits for refunds of tax paid to vehicle lessees at the end of their leases following a rental adjustment that decreased the total rent paid under the lease.
Arizona Requires Peer-to-Peer Car Sharing Platforms to Pay Transaction Privilege Tax
Arizona Senate Bill 1720, effective September 29, 2021, requires peer-to-peer car sharing platforms to pay transaction privilege tax on rentals conducted on their platforms.
Rental Cars Used in Chicago – A Personal Property Lease Transaction Tax Saga
The Illinois Supreme Court held that the City of Chicago’s ruling to require rental car companies located within three miles of the City to collect tax is unconstitutional under the home rule article of the Illinois Constitution.
Washington Amends Lease and Rental Excise Tax Rule for Certain Construction Scenarios
The Washington rule on leases or rentals of tangible personal property has been amended to clarify the state’s polices for specific construction services like concrete pumping.
Portable Toilet Rentals Subject to Tax, Not Exempt as a Service in Missouri
Missouri held that the provision of portable toilets and related services were taxable as the rental of tangible personal property, not exempt as waste removal services.
Not-To-Be-Missed Sales Tax Updates out of the Midwest
When it comes to sales tax, there is no such thing as “fly over country.” If you have business operations in the Midwest or make sales into Midwestern states, you must stay on top of sales tax changes that impact…
Virginia Denies Request for Reconsideration of Tax Determination on Lease/Purchase Transaction
A taxpayer’s request for reconsideration of a Virginia tax determination was denied since the taxpayer failed to prove that the state erroneously assessed tax on equipment purchased under a lease/purchase agreement.
Peer-to-Peer Car Sharing Services to Remain Taxable in Maryland
Maryland has extended the sunset date for the imposition of sales tax on peer-to-peer car sharing services until June 30, 2021.
Cylinder Rental Fees Taxable in Wyoming Since They’re Not Demurrage
Cylinder rental fees charged by a seller of industrial, medical, and welding gasses were subject to Wyoming sales tax since the seller failed to establish that they were exempt as demurrage charges.