Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
(b) RENTAL RECEIPTS—ITEMS INCLUDED AND EXCLUDED
330.3174 Auto Leases—Specific Fees. A lessor of autos on which tax is being reported based on lease receipts makes the following fee charges in connection with such leases.
(1) A lessor wishes to change the due date on lease payments. The due date is changed free of charge the first time. Any changes after the first time result in a fee based on the value of the car and the extension length.
(2) If the lease is assumed by a third party, a $250 fee is charged to cover the cost of credit reports, credit approval, correcting title and other such costs.
(3) The lessee did not purchase an "insurance proceeds deficiency liability release" at the time of the initial lease. A couple of months after the lease is signed the lessor will offer an "Optional GAP Waiver Agreement" for a fee of $400 to $500 to cover certain contingent liabilities under the lease.
With respect to the due date change fee and the assumption fee, both of these fees are required under the lease and are included in the rentals payable and tax applies to these charges. The separately stated waiver fee is optional and not required by the lease and therefore is not subject to tax. 4/30/97.