An out-of-state vendor correctly collected Virginia sales tax on a Virginia lessee’s unfulfilled portion of a lease agreement. More…
Illinois Discusses Changes to “”Selling Price”” for Leased Motor Vehicles
Illinois has issued a bulletin to explain changes affecting the basis for determining the \”selling price\” for certain motor vehicles sold in order to be leased.
Certain Car Lease Payments Not Taxable in Illinois
Effective January 1, 2015, lease payments made on certain vehicles were not subject to Illinois sales and use tax because the lease is not for a defined period.
Louisiana Suspends Revenue Ruling on Taxability of Repair Parts for Rental Equipment
In February 2013, Louisiana issued Revenue Ruling No. 13-003 regarding the taxability of repair parts for rental equipment. The ruling stated that the Louisiana sales tax exclusion for items of tangible personal property that are sold for the purpose of…
Automatic Recurring Inventory Maintenance Fees Taxable in Florida
Linen companies that provide rental linens and include in the sales price of the rental an automatic and recurring charge – an “inventory maintenance fee” – for the guarantee that inventory levels for a desired linen item remain constant are…
Texas Lessor Liable for Accelerated Taxes When It Assigned Lease
A taxpayer that entered into operating leases for equipment located in Texas and then assigned its right to receive lease payments to third parties was properly assessed Texas sales tax because it failed to accelerate, collect, and report the sales…
Oklahoma Discusses Out-of-State Lessor Transactions
Oklahoma has issued a letter ruling regarding the sales tax treatment of transactions involving an out-of-state company that leases equipment to customers in Oklahoma. The company did not have a place of business in Oklahoma, and the equipment it leased…
Delaware Lowers Tax on Leases
Delaware has issued a notice to remind taxpayers of gross receipts tax rate changes that became effective on January 1, 2014.
Payments to Affiliated Company for Equipment Considered Lease Payments in Virginia
Payments made by a taxpayer to an affiliated company for the use of equipment constituted lease payments subject to Virginia sales and use tax. The affiliate made monthly loan payments for the equipment and charged the taxpayer a monthly payment…
Property Tax Included in Leased Vehicle Sales Price in Rhode Island
The sales price of motor vehicle lease payments properly included personal property tax charged to the lessee by the lessor, for Rhode Island sales and use tax purposes. Only taxes that are legally imposed on the consumer can be excluded…
Michigan Aircraft Owner Not a Lessor Qualifying for Rental Receipts Election
An assessment for Michigan use tax due on the purchase of an aircraft was upheld because the taxpayer did not qualify as a lessor for the rental receipts election.
Michigan Aircraft Lessor Not Liable for Use Tax
A Michigan lessor of an aircraft was not liable for Michigan use tax on the purchase price of an aircraft because it was entitled to make an election to pay use tax on the lease payments it received.
Sales and Use Tax Treatment of Equipment Leased in Missouri Discussed
A company that leases commercial business equipment should collect and remit Missouri use tax on amounts paid by its customers on leases of equipment that were purchased from vendors outside of Missouri when the equipment is stored, used, or consumed…
Kansas Discusses Taxability of Providing Equipment with an Operator
The Kansas Department of Revenue issued an opinion letter regarding the sales tax treatment of transactions involving the furnishing of equipment with an operator.
Florida Leasehold Improvements Not Subject to Sales and Use Tax
The rental or leasing of property in Florida is taxable unless the property is exempt.
Rental Payments for Equipment Removed from Florida Not Taxable
The Florida Department of Revenue has issued a technical assistance advisement clarifying the taxability of payments on rentals of equipment from Florida dealers that are removed from the state. Rental payments made after equipment has been removed from Florida are…
Hawaii Rental Receipts Not Taxable for Agent
According to a Hawaii Letter Ruling, a real property rental agent’s receipts of rental deposits and payments that were forwarded to the real property owners were considered income of the owners, and therefore the agent was not liable for Hawaii…
Truck Rental Business’ Payments to Dealers Not Subject to Florida Tax
A truck rental business’ commission payments to dealers who rented trucks and equipment to customers were found to be not subject to Florida sales tax because the taxpayer did not have use, access, or control over the dealer’s real property,…
Minnesota Revenue Notice Modified to Consider One-Time Rental of Laundered Items as Linen Supply Service
The renting and furnishing of laundered items on a one-time basis is considered a linen supply service, instead of a rental of tangible personal property.
Online Travel Companies Not Liable for New Mexico Local Occupancy Tax on Mark-Up
The U.S. District Court for the District of New Mexico found that online travel companies were not liable for city-imposed additional New Mexico lodging tax on the difference between the total price of a hotel room collected from customers and…
Wisconsin Taxability of Equipment Provided with Operator Changed
In order to conform to the requirements of the Streamlined Sales and Use Tax (SST) Agreement and the definition of lease or rental, the Wisconsin Department of Revenue has made changes in the sales and use tax treatment of equipment…
New York Assess Tax on Lease Payments Due But Not Paid
An insolvent taxpayer who did not actually make lease payments for a vessel it leased was found to still be liable for the tax due on the entire value of the lease. Under New York Tax Law, long-term leases of…
New York Discusses the Taxability of Food Container Rentals and Related Charges
The New York Tax Commissioner has determined that a taxpayers’ rental fees and related charges for reusable food containers to farmers were not exempt from New York sales and use tax. In the opinion, the taxpayer contended that the rental…
Florida Determines Amount of Exemption On Multiple Use Property
When a lease involves multiple use of real property, partially taxable and partially exempt, the Department will determine which portion of the total rental charge is exempt from the tax.