Is month-to-month rental subject to sales tax?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is month-to-month rental subject to sales tax?
If a person rents a room with a month-to-month rental agreement do they have to pay sales tax, if they stay for a month or more total? What if they start renting mid-month and pay for half a month, then pay for the next month on the 1st of the month?
Asked on September 7, 2011 under Real Estate Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The custom and practice in the residential and commercial real estate business is that sales tax is not included on any rental. The rent is typically a stated monthly amount, but certain utilities can be added onto the amount that vary from month to month.
I have never seen in the years that I have been practicing the imposition of sales tax upon a rental. The reason is that a rental is a rental and not an actual sale of a product to a consumer to keep, give away or dispose of such as clothes or a vehicle.
Landlords are required to report the income generated by their rentals for income tax purposes, at both the federal and state levels.
Good question.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.