Today’s economy has allowed rental and leasing companies to flourish. Many jurisdictions impose a sales tax on the rental or lease of tangible personal property. And along with this tax imposition comes some sales tax applicability nuances depending on the type of lease, associated services and the type of property being leased.
Some sales tax concepts for the leasing industry are simple; others are more complicated. For example, a lessor, by definition, owns property and leases the use of that property to a lessee. The property that is owned by the lessor creates sales tax nexus wherever the equipment resides, a straightforward concept for the most part. The taxability of the lease itself and certain related services is much more complex.
Source: taxconnex.com
