California Hoist Renter Stuck with $281,000 Sales Tax Bill

A construction equipment company is liable for about $281,000 in sales and use taxes because it leased hoist equipment instead of providing exempt services, a California tribunal announced Monday.

USA Hoist Co. Inc. entered into taxable leases with contractors because the rentals gave full control to the contractors, evident of a lease under state law, the California Office of Tax Appeals said.

• USA Hoist argued it entered into exempt service agreements because the hoists were lent with the company’s own operators, but the leases didn’t obligate the contractors to use USA Hoist’s operators, Administrative Law Judge Andrew Wong said
• However, ...