by Nancy A. Geary
Sales tax compliance can be a daunting task for any company to take on, but it is especially difficult for an equipment leasing company. Why? Because it is a complicated area made even more complex by the types of business activities leasing companies encounter every day.
There are variations on sales, use and rental tax for the types of equipment a company is financing, and the complexity grows exponentially as a leasing company branches out with leased equipment located in multiple states. Each state’s laws are different and require a thorough understanding to properly assess, report, file and pay the correct amounts to the proper jurisdictions. Companies also must deal with a myriad of exemptions that may apply within each state or jurisdiction. A leasing company must consider all of these issues when deciding to expand operations with customers located across the country.
How can a leasing company be certain of compliance with all sales and use tax issues in every jurisdiction of its operation? By asking the right questions and addressing common compliance hurdles ahead of time.