What taxes are additional to the lease payment?
Tax rates are established by state and local tax authorities, so they vary across the country and may change periodically. In most states, there is a sales/use tax rate that is applicable to all lease payments and added to the monthly payment. In addition, many larger cities have local taxes, such as transit taxes, that are also applicable. These rates will vary from month to month and from jurisdiction to jurisdiction, often from zip code to zip code! RLC’s systems will keep track of all such tax rates, updated at least monthly and occasionally more frequently. The other common tax associated with equipment leasing is property tax, which is the responsibility of whoever owns the equipment. In an equipment lease, the amount of the property tax due to a tax authority is passed onto the lessee in some manner, either as part of the monthly payment or as an annual lump sum. It should be noted that a property tax is due regardless of who owns the equipment. If the equipment is purchased via
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