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?
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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