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What is the taxability of fleet purchase discounts or incentives (provided for volume purchases, ordering incentives, government contracts, etc.)?

April 26, 2017discounts fleet government incentives ordering provided purchase purchases taxability volume

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What is the taxability of fleet purchase discounts or incentives (provided for volume purchases, ordering incentives, government contracts, etc.)?

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Fleet purchase discounts or incentives are not subject to tax. Retail rebates are subject to tax. 26. A New Jersey resident enters into a 36 month lease with a New York dealer. The paperwork is signed at the dealership and the vehicle is garaged in New Jersey. The state of New York imposes tax on a lease transaction based on where the vehicle is titled, so New York tax will not be due on the sale. What are the dealers tax obligations? The New York dealer should collect the New Jersey tax up front, based on either the original purchase price or the total lease payments option, and remit it with the next monthly return. 27.