Rental of Personal Property
You owe tax on rentals of personal property if:
You are in the business of renting or leasing personal property to others.
Example of taxable rental items include:
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office equipment
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construction equipment
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data processing equipment
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restaurant equipment
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appliances
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video tapes, computer software, etc.
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cars, trucks, trailers, boats, planes, etc
-
Clothing or costumes
Tax rate and procedures
The tax rate is 1.75% on all rental income. Income is any value received
either as funds or bartered services or merchandise.
(Note: The Mesa City Tax rate increased to 1.75% effective 07/01/2006)
Collection of tax
You may choose to charge the tax separately on each sale, or include transaction
privilege tax in your price. If you over charge any tax to your customers, you must remit
the excess tax to the city.
If you include tax in your price, you can use
factoring to "back
into" the tax included in your gross sales.
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