Property tax and related charges explained
Understand property tax and related charges, including tax charges after termination, sales tax, and administration fees for leased equipment. Learn about tax exemptions and handling property reported by lessees.
This article explains why Pitney Bowes charges property tax to its customers and how the tax is calculated and billed.
Why Pitney Bowes issues an invoice for property tax
Pitney Bowes pays property tax on equipment and these costs are billed to customers based on the lease contract terms. Local assessors use the reported equipment details to determine the tax value.Property tax billing and related charges
Property tax billing frequency
Property tax is billed annually, except in Michigan and Virginia which bill semi-annually. The billing frequency can not be changed.
Property tax charged after termination
Pitney Bowes pays the full property tax when it's due. Clients with equipment on that date get billed for the full charge, not prorated after termination. Estimated charges apply if Pitney Bowes hasn't received the current tax bill.
Sales Tax charged on property tax
Some tax authorities charge sales tax on lease payments, including property taxes. Submit an exemption certificate if your organization is tax-exempt.
Property tax has been charged but you are tax-exempt
Property tax is charged to Pitney Bowes by local taxing authorities since we are not tax-exempt. This charge is passed onto the lessee. Review the lease terms and conditions for more information.
Administration Fee
Pitney Bowes charges a fee for managing property tax payments to local authorities. The fee depends on the property tax amount. It is possible to see multiple fees on one invoice for different contracts.
Property tax charges on equipment that was replaced or moved
You will pay the property tax for the old and new lease together on one bill if you move or replace the equipment before the tax is due.
Property Reported by Lessee
In many states, companies that lease equipment must report that equipment to the state. This is to ensure that lessors located outside the state are paying taxes on the equipment they lease in the state. The leased equipment itself is not taxed directly by the jurisdiction, except in Tennessee, where the leasing company is billed directly.
UPDATED: July 24, 2024