Q: Can a company who is selling a Portable Building charge State Taxes and a monthly Tax on a Rent to Own?
Amount of Building is 19620.00 Charged 1620.00 including the State Sales Tax. But they are charging a 60.00 a month tax on top that. They are saying that there is no interest charges applied but the payoff is 43600.20.
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A:
This situation raises some concerning red flags about potential double taxation and misleading fee structures. The initial state sales tax being included in the $1,620 amount is standard practice for many states on the purchase price of $19,620.
However, charging an additional monthly "tax" of $60 while claiming no interest charges seems questionable, especially given the significant difference between the purchase price and payoff amount ($43,600.20). This monthly charge appears to be more like an interest or finance charge being disguised as tax, which could be misleading or potentially illegal depending on your state's laws.
You should request detailed documentation showing the breakdown of all charges, including the specific tax authorities receiving both the initial and monthly tax payments. Contact your state's consumer protection office or department of revenue for clarification on legitimate tax requirements for rent-to-own buildings. Consider having legal counsel review the contract, as the substantial markup without declared interest could violate truth-in-lending laws or state regulations on rent-to-own transactions.
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