Easing tax compliance for lease portfolios.

The economic downturn has wrecked havoc on state and local tax revenues for the approximately 7,500 separate state and local government entities that generate up to 45 percent of their revenue from levying sales and use tax. So, as many jurisdictions seek ways to soften shortfalls, one current practice is to perform audits on organizations that fall under their sales and use tax regulations. For tax professionals in the leasing industry, maintaining a compliant lease portfolio is an extremely time-consuming and potentially stressful experience.

The Equipment Leasing Association (ELA) has launched the Sales Tax Matrix Project. Developed in collaborative partnership with Tax Partners LLC, the largest sales and use tax compliance service provider in the U.S., to provide members with a centralized tool to untangle complex state and local statues. The Sales Tax Matrix is a Web-based resource that allows members easy access to updated tax information applicable to their lease portfolios.

"Equipment leasing professionals are interested in a quick and easy starting point for determining the sales taxability of the leasing portfolios they manage," said Jim Musslewhite, marketing and alliance manager for the leasing market for Tax Partners. "This matrix helps lessors wade through the ever-changing state and local sales taxability rules, speeding decision-making by concentrating sales taxability information in one place."

Lessors using the sales tax matrix tool can also access more in-depth support resources via its links to relevant state sites, as well as to the ELA, Musselwhite added. The tool can be accessed at www.elaonline.tom or www.taxpartners.com