If the lessee is tax-exempt why is the lessee charged property tax?
Peac Solutions, as the owner of the leased equipment, is required to report all leased equipment, even if the equipment is leased by lessees in the government, church or non-profit sectors. Since Peac Solutions is not a tax-exempt entity and is the owner of the equipment, the lessee’s tax exemption does not pass to Peac Solutions. The tax assessors of each individual jurisdiction make the determination as to whether or not to assess taxes on the assets.
