Sales and Property Taxes

Sales tax– You may notice that the sales tax amount on your invoice is higher than the rate in your state.  The reason for this is that the leasing company does not pay the sales tax on the monthly lease payment, rather, it makes one lump payment to the state for the total amount financed, and then finances that!  The result is that you will be paying 1-1.5% more than your local sales tax rate.  There’s nothing you can do about this.

Property tax– You may have also noticed a line item detailing a charge for property tax.  It may show up quarterly or semi-annually.  If your state has repealed the property tax on inventory, as Ohio did in 2008, you should obviously be exempt.  If your state still issues property tax on business inventory, then be sure to check that the amount is decreasing over time in correspondence with the decreasing value of your equipment.  Overpayment on taxes can often times be retrieved from your leasing company.