Is it legitimate for a lessor to charge Lessee a use tax/sale tax on PROPERTY TAX? CA?
I am in CA, Santa Clara County. I have receive an invoice from my lessor on equipment for property tax. However, I see they are charging me 0.0875 for the property tax that I am paying. From my understanding double taxation is illegal isn't it?
Also we are already paying use/sale tax for the use of equipment on a monthly basis, so the use/tax is not for that and it's calculated based on the PROPERTY tax amount.
Is this legal? If so can someone provide the link/reference to such tax? Thanks!
Taxation best answer:
Answer by Wayne Z
In most states, the reimbursement of property taxes from lessee to lessor is subject to sales tax.
http://www.boe.ca.gov/pdf/pub46.pdf
Bottom of Page 2:
>>>Rentals payable (also referred to as rental receipts) include any payments required by the lease, including amounts paid for personal property taxes on the leased property (except when the lessor is a bank or financial corporation), whether assessed directly against the lessee or against the lessor. Certain amounts, such as payments for late charges and collection costs, are not included in the measure of tax.<<<
Contrary to popular belief, "double taxation" is not illegal.
Taxation
Des Moines IA DSC_4073
Image by You're In My Light (jerrysEYES)
Orignal From: Is it legitimate for a lessor to charge Lessee a use tax/sale tax on PROPERTY TAX? CA? and Des Moines IA DSC_4073
No comments:
Post a Comment