As a premises rental company, the services you provide in connection with the sale of tangible personal property may be subject to sales tax. Additional charges are not included in taxable rent receipts when the tenant is not required, under the rental agreement, to use the services you provide. These optional services may include equipment maintenance, warranty, assembly, reassembly, disassembly, etc. For example, if a car rental company does not require the customer to take out insurance against collision damage, the insurance charges, if the customer decides to purchase it, are not taxable.
The rental of DVDs, video tapes, and video discs is taxable and taxes are calculated on rental receipts. If you (the primary landlord) paid sales or use tax based on the purchase price of the property, no tax will be due on rent receipts if the property is sublet in much the same way you purchased it. Costume rental receipts are subject to use tax, even if the tax was paid on time when the materials were purchased. If you make repairs and make significant changes to the furniture you rent, your rent receipts will be taxable, since the furniture is not rented substantially the same way it was purchased, even if the taxes were paid on time for the purchase of the furniture.
Generally speaking, when equipment rentals for events and parties are taxable, all mandatory rental contract services and charges that customers are required to pay are also taxable. How taxes are applied depends on whether you paid taxes when you purchased the item or placed it in your rental inventory. If you choose not to treat the vehicle as a one-way rental truck, it will be considered mobile transportation equipment (MTE) and, in general, taxes will be paid based on the purchase price of the truck. You must declare rental receipts for the leases on your sales and use tax return for the period in which the tenant made the payment. As a result, rent receipts are subject to use tax because the repairs made to this piece of furniture were significant and, therefore, it is not leased in the same way that you purchased it.
The dealer is responsible for collecting and reporting taxes on all taxable rental payments received from the renter. Therefore, you paid an amount of sales tax at the time of purchase, and if you rent the property in much the same way you bought it, no tax will be paid on the rental bills. When you declare tax on rent receipts, district tax applies to the lease of tangible personal property when the assets are used in the district. If the rental agreement requires the tenant to pay any personal property tax that applies to the leased property, these charges are included in taxable rent receipts regardless of whether they apply directly to you (the landlord) or to your tenant. If you rent a truck one-way, you must declare taxes listed on rental receipts on your sales and use tax return in first reporting period in which truck is leased. You paid taxes to your seller when you bought property and receipts sent to Party Rentals indicate that taxes have been paid on purchase price.
