Charges for Maintenance Taxable as Part of Lease Proceeds

Thursday, September 25th, 2014

 
 
A line of rented portable toilets.
Share
Link
Louisiana
General

A Louisiana Court of Appeals ("Court") recently ruled that the charge for cleaning rented portable toilets was taxable as part of the rental of the toilets.

The taxpayer provided waste management services, including leasing portable toilets and holding tanks. The taxpayer offered cleaning and sanitation services for these leased items. Customers were not required to purchase these services, but customers who chose not to purchase cleaning and sanitation services had to pay a higher rental fee.

The City of Baton Rouge taxes sales and leases of tangible personal property. It does not tax sales of cleaning services. The city sales tax applies to the gross proceeds of a sale or lease.

The Court ruled that the taxpayer's charges for its services were part of the gross proceeds from the lease of tangible personal property. The essence of the transaction between the taxpayer and its customers was a taxable lease. The charge for services could not be separated from the charge for the lease. The charge for services was therefore taxable.

http://www.la-fcca.org/opiniongrid/opinionpdf/2013%20CA%201323%20Decision%20Appeal.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

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.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Louisiana Sales Tax Rates and Exemptions Set to Change...

Friday, May 25th, 2018 -Louisiana's sales tax rates and exemptions are set to change July 1, 2018, when several 2016 law changes will ...

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...