Property Tax Explained

Information on why Property Tax is charged, including answers to frequently asked questions.

Property Tax Explained

Property tax is paid to the local jurisdictions by Pitney Bowes as the owner of the equipment. The reimbursement of this charge is billed to the customer in accordance with the Terms & Conditions of the contract.
Pitney Bowes reports the cost, estimated value, and acquisition year of the equipment to the local jurisdiction. Local assessors determine the value of the property tax based on this information.
Property Tax will bill annually. As it is not possible to determine Tax charges in advance, the frequency of billing can not be changed.
- Note: The states of Michigan and Virginia will bill twice a year.

FAQS

Property tax charged after termination
Sales Tax charged on property tax
Property tax has been charged but we are tax exempt
Administration Fee
Tax Billed on Equipment that was Replaced or Moved from Another Location
Property Reported by Lessee

Property tax charged after termination

The charge is imposed and paid by Pitney Bowes on the lien date according to each jurisdiction. Clients who possess equipment on the jurisdictions lien date are billed for the full value of the charge. This charge will not be prorated following termination.

Note: An estimated charge will be issued based on historical activity when Pitney Bowes has not received the current lien date property tax bill.

Sales Tax charged on property tax

Certain tax authorities assess sales tax on all payments made by a lessee under a lease, including payments for property taxes. If your organization is exempt from sales tax, an exemption certificate can be submitted here.

Pitney Bowes is not tax-exempt; therefore we are charged Property Tax by the local taxing authorities. Per the leasing terms and conditions, this charge is payable by the lessee.

Pitney Bowes charges an Administrative fee for processing and paying the Property Tax to each jurisdiction. The fee is included on each property tax reimbursement invoice as per the Terms & Conditions of the contract.

Note: The cost is based on the property tax amount. If multiple contracts are billed on the same invoice, separate administrative fees may be charged against each contract.

Tax Billed on Equipment that was Replaced or Moved to Another Location

If property tax cannot be billed before a replacement or equipment move, those charges will be applied to the new lease. They will be combined and billed on a single property tax invoice.

Many jurisdictions require leased equipment to be included on the annual listing of owned equipment, this is to ensure out of state lessors are registered and reporting the equipment they lease within the jurisdiction. The leased equipment included on the filing is not assessed and no tax we billed.

Note: Tennessee counties require Pitney Bowes to report leased equipment but will bill the lessee directly.

UPDATED: December 08, 2022