Titling Tax [R0309]

The Titling Tax report [R0309] provides the information necessary for tracking titling tax, disbursed upfront to the taxing entity, against use tax recouped over the life of the lease. This report and the titling tax tracking features of LeasePak should be used only for those assets placed in-service in taxing locations which collect titling tax.

The report is organized by Portfolio, Company, Region, Office. The report may be accessed through the Controllers Tax report menu [R03] and may be selected interactively for:

• All leases
• A portfolio
• A company
• A region
• An office
• A lease

 

Titling Tax Selection

• ALL
  Enter X to report on all leases. Leave blank to report on a specific portfolio, company, region, office and/or lease.
  
  
• PORT
  Enter the number of the portfolio upon which to report. Leave blank if reporting across portfolios.
  
  
• COMP
  Enter the number of the company upon which to report. Leave blank if reporting across companies.
  
  
• REGN
  Enter the number of the region upon which to report. Leave blank if reporting across regions.
  
  
• OFFIC
  Enter the number of the office upon which to report. Leave blank if reporting across offices.
  
  
• LEASE
  Enter the number of the lease upon which to report. Leave blank if reporting across leases.

 

Titling Tax

The Titling Tax report [R0309] reports at the lease level and provides the following information:

• LEASE
  The lease number is displayed.
  
  
• LESSEE SHORT NAME
  The short form of the lessee name is displayed.
  
  
• ORIGINAL TITLING TAX
  The original amount of titling tax paid upfront to the state is displayed. This amount is entered through the Book Lease option of the New Lease update [U0101]. Only leases with an original titling tax amount are reported on this report.
  
  
• LAST MONTH ACCUMULATED USE TAX
  The total amount of accrued use tax accumulated from the start of the lease to the prior month is displayed.
  
  
• CURRENT USE TAX
  The amount of use tax accrued this month is displayed.
  
  
• TOTAL ACCUMULATED USE TAX
  The total use tax accrued to date is displayed. It is calculated as follows:

  LAST MONTH ACCUMULATED USE TAX
  + CURRENT USE TAX.

• TAX UNRECOUPED
  The amount of tax unrecouped from the lessee is displayed. When this figure becomes a negative, the lessor must begin remitting use tax to the titling tax state. The amount of unrecouped tax is calculated as follows:

  ORIGINAL TITLING TAX
  - TOTAL ACCUMULATED USE TAX

• TOTALS/GRAND TOTALS
  Page totals for number of leases and all dollar amounts are shown by office. Region, company, portfolio, and grand totals are shown for the number of leases and all dollar amounts.

 

Additonal Information

Titling tax is levied against the lessor, representing the approximate amount of use tax due over the life of the lease. It must be paid in full at the commencement of the lease. The lessor is then entitled to recoup this tax by assessing, collecting, and retaining an amount equal to the normal use tax on the lease payment. However, when the lessor has fully recouped the original titling tax amount, the lessor must immediately begin remitting the use tax collected from the lessee to the appropriate taxing entities.

This report is designed to notify the lessor when to begin remitting the use tax collected to the taxing entities (i.e., when the tax unrecouped becomes negative). The actual dollar amounts to be remitted is not reported, although it can be calculated from the elements of the report.

To calculate the amount of use tax to remit to taxing entities:

• Consider only those leases with a negative tax unrecouped.
  
  
• If this is the first month that the lease's tax unrecouped is negative, the tax to remit is the absolute value of the tax unrecouped (i.e., drop the negative sign from the tax unrecouped). Normally, if the absolute value of tax unrecouped is less than the current use tax, this is the first negative month for the lease.
  
  
• If this is not the first negative month, the tax to remit is the current use tax.

 

LeasePak  Reference Guide

©  by McCue Systems Incorporated. All rights reserved.

The information contained in this document is the property of McCue Systems, Inc. Use of the information contained herein is restricted. Conditions of use are subject to change without notice. McCue Systems, Inc. assumes no liability for any inaccuracy that may appear in this document; the contents of this document do not constitute a promise or warranty. The software described in this document is furnished under license and may be used or copied only in accordance with the terms of said license. Unauthorized use, alteration, or reproduction of this document without the written consent of McCue Systems, Inc. is prohibited.