Property Tax FAQs

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

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. PEAC Solutions is required to report leased equipment owned on the jurisdiction’s lien date to the taxing authorities. The full tax for […]

Under the terms of the lease, a lessee is reimbursing PEAC Solutions 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, PEAC Solutions is required to collect and remit sales tax on this taxable gross receipt.

A true-up is when PEAC Solutions 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, PEAC Solutions will invoice the difference. This is standard practice with leasing companies.

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

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 […]

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

The property tax bill PEAC Solutions 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, PEAC Solutions cannot send you a copy of the actual tax bill, however, PEAC Solutions can send […]

PEAC Solutions 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 PEAC Solutions has an actual tax assessment on file for the equipment, the rate used is […]

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

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 […]

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