Taxpayers who lease tangible personal property in Washington and are charged for property taxes by the leasing agent must also pay retail sales tax on the property tax charged. Personal property taxes are considered nondeductible from gross proceeds of sales…
Rental of Storage Units Not Taxable in South Dakota
The South Dakota Supreme Court found the owners of a self-storage facility not liable for sales tax. The South Dakota Department of Revenue argued that the taxpayer’s business qualified as warehousing and storage, a taxable service under statutory tax law.…
Crane Leased for Use in Manufacturing Exempt in Missouri
A company that leases a crane for use at the beginning of the manufacturing process in order to lift and transport materials to a conveyor belt is exempt from Missouri sales and use taxes.
Virginia Exempt Sales Tax on Personal Property Taxes on Leases if Separately-Stated
Personal property taxes which are separately-stated on a lease are exempt from sales and use tax in Virginia. However, if property taxes are included in the total monthly rental amount they are be subject to sales and use tax. (Ruling…
Only Expenses That Comprised Rent Were Taxable in Florida
The Florida Department of Revenue does not have the authority to assess sales and use taxes on the total amount the taxpayer billed his tenants/clients as base rent, as that amount encompassed more than just the total rent charged. The…
End of Lease Options Material in Determining Transactions Privilege Tax Classification
In a recent Private Taxpayer Ruling, the Arizona Department of Revenue classified two nearly identical leases differentially because of differing end of lease options.
Illinois Certain Vehicles Used for Renting Purposes No Longer Exempt
Certain vehicles used for renting purposes are now subject to sales taxes when purchased in Illinois.
Cranes With Operators Constitute an Exempt Service in Florida
A Technical Assistance Advisement was issued by the Florida Department of Revenue clarifying that when a Florida taxpayer provides a crane to a customer on an operated and maintained basis…
Tennessee Leases & Rental Change Discussed
Effective January 1, 2008, Tennessee has amended the definition of a lease or rental for sales and use tax purpose in accordance with requirements under the Streamlined Sales and Use Tax Agreement. The amended definition does not include transfers of…
Missouri Exempts Dealership on Loaner Vehicles
The Missouri Administrative Hearing Commission concluded that a Missouri car dealership was not liable for sales tax on loaner vehicles that it provided to its customers. Since the car dealership never owned or leased the loaner vehicles, there was no…
Louisiana Leases or Rentals of Pallets Exempt
Effective July 1, 2008, A Louisiana state and local sales and use tax exclusion has been enacted for the lease or rental of pallets used in packaging products produced by a manufacturer. In addition, the term “manufacturer”, for the purposes…
Mississippi Defines the Term “”Hotel”” for Sales Tax Purposes
Recently, Mississippi defined the term “hotel” for sales tax purposes to mean any entity or individual engaged in the business of furnishing or providing one or more rooms intended or designed for dwelling, lodging, or sleeping purposes to accommodate transient…
Texas Proposed Lease of Aircraft Subject to Tax
An aircraft owner’s proposed agreement to lease its aircraft to an air carrier to provide flight services to the owner and third parties was not exempt as an operating lease by the Texas Comptroller of Public Accounts. The agreement does…
Arkansas Governor Repeals Motor Vehicle Lease Provision
On March 28, 2007, Arkansas Governor, Mike Beebe, signed H.B.2226 – repealing conflicting language in Arkansas law pertaining to sales tax on leases or rentals of motor vehicles. The repealed provision stated that any person engaged in the business of…
Taxability of Complimentary and Discounted Rooms in Massachusetts
Directive 06-7, recently issued by the Massachusetts Department of Revenue, explains how room occupancy excise taxes apply to both complimentary and discounted hotel rooms. The room occupancy tax must be collected if all of the following are present: 1) the…
Florida’s Floating Docks are Taxable
A Florida technical assistance advisement was posted on November 15, 2006, in response to a taxpayer\’s petition of whether or not floating docks are classified as tangible personal property and therefore exempt when purchased as exclusively for leasing purposes.
New Jersey Notice on Taxability of Storage Space Updated
Charges for furnishing of space for storage of tangible personal property by a person engaged in the business of furnishing space became taxable effective October 1, 2006. Additionally, charges for the service of storing all tangible personal property not held…
Massachusetts Addresses Changes in Room Rental Taxation
As a result of a recent court decision, the Massachusetts Department of Revenue has revisited their position on the taxation of room rentals.
Utah Leasing and Rental Rules Amended
Utah sales and use tax rules have been amended to clarify certain rules of leases and rentals involving tangible personal property. For example, vendors who rent or lease tangible personal property along with operating personnel must pay sales and use…
Expanded California Artwork Exemption Takes Effect
Certain leased original works of art are exempt from California sales and use tax.
Kansas Clarifies Leases and Rental Rules for Sourcing, Bundling
In a private letter ruling clarification, the Kansas Department of Revenue addressed the taxability of leases of tangible personal property other than transportation equipment.
Golf Simulators Not Eligible For Rental Exemption In Indiana
Golf simulators described as \”high tech driving ranges\” were not eligible for an exemption provided for property that was acquired for rental or leasing.
Texas Issues Lease Assignment Ruling
In a recent decision, the state ruled that a business which leased equipment and later assigned its rights to the leases to third parties was responsible for all sales tax due on the leases, even if the leases were assigned…
New York Clarifies Taxability of Motor Vehicle Leases
Motor vehicle dealers in the state of New York are responsible for collecting and remitting the tax on a lease that assigned to a third party lessor. Sales tax is due on the lease of a motor vehicle “as of…