Sales tax is complicated no matter the industry you are in. But the leasing industry brings out even more complicated nuances depending on the type of lease, support activities and even the leased item itself.
Some sales tax concepts for the leasing industry are quite simple while others are more complicated. For example, a lessor by definition owns property and leases the use of said property to a lessee. This property that is owned by the lessor creates sales tax nexus wherever the equipment resides. This concept is generally straightforward. However, the taxability of the lease itself and certain related services is much more complex.
Source: taxconnex.com
