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.
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.
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.
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.
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.
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…
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.
Oklahoma tax law allows a contractor who has a construction contract with a church to make purchases of tangible personal property or services necessary to perform the contract, exempt from sales and use tax.
The Colorado Department of Revenue indicated that vehicle and hotel occupancy rentals are similar in nature and therefore, several occupancy provisions seem appropriate to apply to the taxability of advance payments on vehicle rentals.
Customer facility charges that are separately stated, imposed on and charged to customers, and remitted to airports by a car rental company should not be included in gross receipts for sales tax purposes.
A Florida lessor failed to charge, collect, and remit sales tax to the state on payments made in addition to rent from a lessee. The lessor was audited, and the state assessed sales tax on the additional payments.