Legal Question in Tax Law in Indiana

misuse of increased sales tax

leased a car in 1999 for 5 years, sales tax included in contract. sales tax increased in 2003, bank is going back and refiguring sales tax for period remaining in contract and increasing mt monthly payment

can the bank break contract and refigure sales tax?

Asked on 1/15/03, 7:45 pm

1 Answer from Attorneys

Robert Restivo Restivo Law Firm

Re: misuse of increased sales tax


The bank isn't breaking the contract. In a lease, the sales tax is computed and collected as the lease payments come due, rather than the time of the initiation of the lease.

The change in the lease payment should only affect future payments. If the bank tries to collect tax for a period before the increase went into effect, then there would be a problem.

On the bright side, if the sales tax ever goes down (yeah, right!), then the lease payments will decline.


Read more
Answered on 1/15/03, 7:59 pm

Related Questions & Answers

More Tax and Taxation Law questions and answers in Indiana