If you do not return the equipment, you will be billed on a monthly basis. If you chose a fixed purchase option, you must exercise your rights within 30 days of the last payment due date. In most states and some local jurisdictions, World Office Financial Services is required to pay a use tax on each monthly payment. In certain states, the full amount of taxes is due at the inception of the lease, and the responsibility to do so falls on World Office Financial. In these situations, the tax is added to the equipment cost to calculate the monthly payment.
Many states also charge an annual tax on tangible personal property.
Since World Office Financial is the legal owner of the equipment, we are required to pay this tax. We pass this cost on to you in either a lump sum or spread over 12 monthly payments. Again, these taxes change periodically and are not included in the calculation for the base monthly payment. From you, the lessee's viewpoint, you may be able to deduct the monthly lease payment as a business expense on your tax returns. You should seek specific advice from your accountant.