How can LA county charge sales tax on equipment tax?

Question

I just got a bill for equipment tax on my postage meter. They charged me sales tax on the equipment tax! I called pitney bows and they said that is what LA county charges them. I don't get it... Tax on tax?

Answer 1

The reimbursement of personal property tax from lessee to lessor is subject to sales tax in California (and most other states).

It does make you scratch your head but Pitney Bowes is correct.

The info is on the BOE website though it is tough to find.

Answer 2

I don't know what an equipment tax is from Pitney Bowes. If it is a rental charge, rentals are taxable in California.

Contact the State Board of Equalization to determine if the tax was accurately charged.

Answer 3

You got it, you just don't like it.