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.

Chicago Updates Cloud and Software Lease for Release Rule

Chicago modified its application of the lease for re-lease exemption to include certain software and cloud products, effective July 1, 2020.

How States Tax Rentals of Tangible Personal Property

States do not have a uniform approach to taxing rentals and leases of tangible personal property. Learn the three general categories state rules fall into in taxing true leases of TPP.

Florida Reduces Sales Tax Rate for Rental, Lease, or License to Use Real Property

The Florida sales tax rate imposed on commercial rentals will decrease from 5.7 to 5.5 percent, effective January 1, 2020.

Indiana Issues Directive on Heavy Equipment Rental Excise Tax

Indiana has a heavy equipment rental excise tax imposed at a rate of 2.25% and effective January 1, 2019.

Reduction of Florida Sales Tax on Commercial Real Property Leases to Commence January 2018

Beginning January 1, 2018, Florida’s sales tax rate imposed on the total rent charged for renting, leasing, letting, or granting a license to use commercial real property is reduced.

Rentals Used for Church Construction Contract Exempt in Oklahoma

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.

Colorado Issues Guidance on Advance Payments for Vehicle Rentals

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.

Oklahoma Issues Letter Ruling Regarding Taxability of Car Rental Fees

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.

Additional Payments For Real Property Lease Taxable in Florida

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.

Tax Base of Aircraft Acquired in Exchange Not Reduced for Like-kind Exchange from Indiana Sales Tax

A company was required to collect Indiana sales tax on the leasing of an aircraft it acquired in an exchange based on the total consideration the company provided with a deduction for the value of a like-kind exchange.

Rentals & Leases: How Does Sales Tax Apply to Them?

Whether you’re a lessor or a lessee, it’s important to understand the different scenarios that you may encounter and know how sales tax applies to the different types of transactions.

Equipment Lease is Taxable Transfer of Property in Arkansas

Leases of equipment by a taxpayer were subject to Arkansas sales tax and short-term rental tax since tangible personal property was transferred to customers at delivery sites and services rendered were incidental.

Illinois Discusses Taxability of Final Lease Payments

The final payment of a lease-to-own transaction was not subject to Illinois sales tax. More…

Tangible Personal Property Leases between Related Business Entities Exempt in Wyoming

Wyoming enacted a sales tax exemption for a lease or rental of tangible personal property, effective 07/01/15. More…

Colorado Issues Guidance on Taxability of Leased Vehicles Used in Interstate Commerce

Colorado issued guidance on whether certain lease payments for vehicles used in interstate commerce are subject to sales or use tax. More…

Use Tax Credit Available on Sales of Loaner Cars in Illinois

A car dealership was entitled to a use tax credit against the Illinois sales tax it owed on retail sales of cars under a loaner car program. More…

Tax Due on Residual Value of Leased Vehicle when Option to Buy is exercised in Idaho

An Idaho taxpayer who totaled a leased vehicle was not entitled to a sales tax refund after exercising his option to buy the vehicle. More…