Who is the legal owner of my leased equipment, and who pays business personal property taxes on it?
Peac Solutions is the legal owner of the equipment you lease. Peac Solutions is required by law to pay business personal property taxes on an annual basis to the taxing authorities in the jurisdiction where the leased equipment is located. Under the terms of the lease agreement, you (the lessee) agreed to reimburse Peac Solutions for any such taxes paid on the leased equipment.
Peac Solutions calculates the anticipated tax liability of the leased equipment and invoices the lessee this estimate on an annual basis. Once Peac Solutions receives the actual property tax bill from the lessee’s taxing jurisdiction(s), Peac Solutions reconciles the estimate paid by the lessee against the actual taxes paid by Peac Solutions to the taxing jurisdiction. This property tax reconciliation results in a refund or credit, if the estimate paid Peac Solutions is higher than the actual tax Peac Solutions paid to the taxing jurisdiction. Conversely, the lessee will be billed the difference if the estimate was lower than the actual taxes paid by Peac Solutions to the taxing jurisdiction.