Equipment Rentals Taxable in Indiana when Renter Controls Use of Equipment

Friday, March 2nd, 2018

 
 
Worker on rented scaffolding.
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The Indiana Department of Revenue recently ruled that the rental of scaffolding is a taxable lease when the renter controls the use of the equipment.

The taxpayer was an Indiana steel mill that rented scaffolding for various projects. The rental company provided employees to install, repair, inspect, and disassemble the scaffolding. The taxpayer required the rental company's employees to follow strict requirements relating to training, safety, and monitoring of the scaffolding.

Indiana taxes equipment rentals, but does not tax rentals provided with an operator if the operator maintains control over the equipment. The ruling determined that the scaffolding rental was taxable. The ruling reasoned that the taxpayer exercised at least partial control over the scaffolding by directing the actions of the rental company's employees through strict training, safety, and monitoring requirements. However, the ruling determined that the separately stated labor charges were not taxable.

https://www.ttrus.com/Equipment Rentals Taxable in Indiana when Renter Controls Use of Equipment


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

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