Sales Tax on Rentals Needs to Stop!

Hey folks. I've always wondered why movie & vehicle rentals include sales tax.

This really burns me up since I'm not technically buying anything. I'm borrowing & returning. So, how & why is it legal to charge someone sales tax on a rental?

Is it just a state thing? I'd really like to hear other comments about this.

Mods: I checked on BTS first, but none of the topic headings seemed relavant. If you want to move this, please feel free.

I have asked the same question before. The answer I was given, which makes sense, if that you are paying taxes on the rental "service". See in most states, it is not actually a "sales tax", it is a "Sales and Use Tax". You are paying taxes on things you buy and services you pay for, thus sales and use.

Hope that clears it up a bit.

reply to post by rogerstigers


Aahhhh! I forgot about that silly loophole 'use tax'. Well, I'm feeling very used, so can I charge the government a Use Tax?

On a semi-related note, I know a professional photographer who lives & works in California. Under current laws, if he gives his client a CD with the images he shot for them, he must charge sales tax on his commercial shoot, because goods have changed hands. On the other hand, if he puts the client's photos on a secure webserver and the client downloads the ones and zeros, no product has changed hands, so sales tax need not be collected...

Insane.

reply to post by JoshNorton


Interesting!

Somehow, I feel like a 'Not yet' is in order.