Hurricane, UT asked in Tax Law for Alaska

Q: Is it legal to charge a lessee sales tax on their lease amount and property tax?

I had a 5 year lease on property to run an RV Park/Campground. I was charged my lease amount plus sales tax on that amount. I also had to pay the property tax on the property that I didn't own for the 5 years. Is this legal to charge both?

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1 Lawyer Answer
Terrence H Thorgaard
Terrence H Thorgaard
  • Tax Law Lawyer
  • Freeeport, FL
  • Licensed in Alaska

A: Whether property rental payments are subject to sales tax depends on the terms of the sales tax ordinance. They weren't when I litigated borough sales tax issues a number of years ago. Which municipality is this?

Whether you should have been paying property tax, as well as sales tax, depends on the terms of your lease.

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