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Tax Forms & FAQs

  • If Marlin owns the equipment, why does the lessee have to pay property taxes?

    Under the terms of the lease agreement, the lessee agreed to reimburse Marlin for any such taxes paid on the leased equipment.

  • Why is the lessee billed for property taxes when the lessee did not own the equipment for a full year?

    Each taxing jurisdiction has a different lien date or fiscal start date for the year. There are 4 different lien dates used by jurisdictions: January 1st, April 1st, July 1st and October 1st. Marlin is required to report leased equipment owned on the jurisdiction’s lien date to the taxing authorities. The full tax for the […]

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  • Why is there sales tax on property tax?

    Under the terms of the lease, a lessee is reimbursing Marlin for property taxes paid on the lessee’s behalf. Many states consider this reimbursement as a taxable gross receipt for sales tax purposes. In these instances, Marlin is required to collect and remit sales tax on this taxable gross receipt.

  • What is a tax true-up?

    A true-up is when Marlin reconciles the estimated taxes paid by the lessee to the actual tax billed by the tax jurisdiction. If the lessee overpaid the taxes, they will receive a credit, via check. If the lessee underpaid, Marlin will invoice the difference. This is standard practice with leasing companies.

  • Why is the lessee billed or refunded for a property tax true-up?

    The property tax true-up is the reconciliation of actual property taxes paid by Marlin on the leased equipment against the tax estimate the lessee was billed by Marlin for a given tax year. Most state and local jurisdictions’ in the United States have laws that require Marlin to report leased personal property and pay taxes […]

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  • Who is the legal owner of my leased equipment, and who pays business personal property taxes on it?

    Marlin, 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 Marlin is not a tax-exempt entity and is the owner of the equipment, the lessee’s tax exemption does not pass to Marlin. The tax […]

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  • Why does Marlin charge taxes when other leasing companies do not? 

    Other companies do charge their customers taxes usually by building the cost into the lease factor rate. Marlin does not build property taxes into its lease rates. Instead, Marlin breaks out the taxes as a separate line item on the lease invoice so that the lease payment is easier to understand.

  • Can Marlin fax or mail me a copy of the actual tax bill?

    The property tax bill Marlin receives contains information on all leased equipment in a given jurisdiction as opposed to a bill for each piece of equipment or for each lease. To preserve the confidentiality of our lessees, Marlin cannot send you a copy of the actual tax bill, however, Marlin can send you a detailed […]

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  • How does Marlin calculate the tax estimate?

    Marlin uses tax software that is used by many leasing companies to compute the tax estimate. The software takes the contract’s assessed (depreciated) value and then multiplies that value by the tax jurisdictions’ previous year’s tax rate. If Marlin has an actual tax assessment on file for the equipment, the rate used is 90% of […]

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  • Why is the lessee billed taxes on a lease?

    Each jurisdiction that collects personal property taxes, taxes the owner of the equipment. Marlin is the legal owner of the equipment under the lease agreement. Under the terms of the lease agreement, the lessee agreed to reimburse Marlin for any such taxes paid on the leased equipment.

  • Why was I charged sales tax even with an exemption certificate?

    Marlin, 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 Marlin is not a tax-exempt entity and is the owner of the equipment, the lessee’s tax exemption does not pass to Marlin. The tax […]

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  • Where can I get an interest statement for YE tax reporting (year-end balance)?

    Log in to MyMarlin

  • W-9 Request

    Need a W-9 In the process of financing your new equipment, you may need a Marlin W-9 form for tax purposes or to add to your accounts payable system. Download a W-9 (PDF) at this link.

  • Tax Exempt Status

    For Loans If your organization is tax exempt, and you are making your equipment purchase with an EFA or IPA, please inform your dealer’s sales representative and provide your tax documentation at point of sale. They will work with us directly to make sure your tax-exempt status is reflected in your financing agreement.  For Leases […]

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  • Property Tax FAQs

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