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I am kind of stuck on this one. I appreciate the input ahead.
I live in Florida and have a corporation here. Recently I did a lease to own agreement for about $10k in equipment. Neither the supplier or the leasing company are in Florida or have any registered business in Florida.
The lease agreement cites sales tax at 7%, the standard rate in Florida. When I asked my leasing agent about this, they cited they were a large company and had to process the sales tax. When I asked if they had a registered business in Florida, they repeated the previous answer.
My concerns and questions are 2 fold.
1. With no registered business in Florida, why are they obligated to collect sales tax?
2. The sales tax being charged is based on the total lease amount, not the lower purchase price of the equipment. Is this normal?
1. Because it's the law.
2. It's normal for commercial leases. A quick Google search leads me to believe that equipment is subject to the sales tax as well. (farm equipment is exempt)
Why would a business not in a particular state have to collect sales tax for another? If I buy something online from another store not in my state, there is no sales tax collected. I am aware that you need to report it on your own.
thanks!
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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That's standard practice on all states that collect sales tax, regardless of where the leasing company is located.
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