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Companies don't "charge" sales taxes, the government does. The seller only acts as agent for the state in the collection of the tax; they then turn the money directly over to the state. State law determines what is taxable but in most states the lease or rental of tangible personal property is fully taxable. Technically they are not collecting the sales tax but the use tax on the item. The Use tax parallels the Sales tax and is collected on used goods and taxable services.

by bostonianinmo

5 months ago

Asker's Rating: 

Companies only charge sales tax if the government legislates that they have to. A rented or leased item is still a purchase, and if your state has a sales tax, then it will most likely be taxed.

by Adam- 5 months ago

Tangible personal property that would be subject to sales tax when purchased would also be subject sales tax if that item were rented or leased. Also, it's not that companies are "allowed" to charge sales tax. They must. The companies don't get to keep that money. They pass it on to the state.

by Wayne Z- 5 months ago