Glossary of Terms

Print Friendly, PDF & Email

Use Tax

Many states charge a "use" tax in lieu of a sales tax when equipment is leased. In practice, instead of paying a sales tax for purchase of the leased equipment, the lessor collects or lessees directly pay use taxes with respect to each rent period as a percentage of the rentals over the lease term. (Courtesy www.elfaonline.org)

« Back