Can cities legally charge sales tax?

gismo

gismo

Touchdown! Greaser!
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When I park an airplane at KVNC the city of Venice FL charges for tiedowns and they collect sales tax on top of their fees. I don't recall ever paying sales tax on services provided by a government entity and wonder if they are legally entitled to collect it. OTOH, $58.85 for a month's tiedown is pretty reasonable.
 
Is it the airport charging you, or the FBO operating the airport?
If the FBO, they are required to collect tax on taxable transactions.
Whether the service is taxable under FL and Venice law is a separate question determined by the tax law.
 
You have to read the city's charter. That is the legal document that says what they can and cannot do. Power is vested by the State, typically. Sometimes the county.
 
Sales tax laws, of course, vary state-by-state (or by county or city). They can't collect sales tax in Oregon because there is no sales tax. I don't think they charge sales tax in California but they charge property tax on the couple hundred square feet of real estate. I don't know about Florida law but I'd be interested in the response since I'll be in Venice this summer.

-Paul
 
gismo said:
When I park an airplane at KVNC the city of Venice FL charges for tiedowns and they collect sales tax on top of their fees. I don't recall ever paying sales tax on services provided by a government entity and wonder if they are legally entitled to collect it. OTOH, $58.85 for a month's tiedown is pretty reasonable.
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Do you think any govt entity would allow a loophole that would prevent them from collecting a tax!?! :no:
 
Some airport authorities (and other departments such as ports, arenas and the like) operate under "enterprise" rules that allow them to operate as quasi-entrepreneurial entities.

During my time at Ernst I was responsible for the KC airport audit and dealt with these "neither fish nor fowl" regs on an ongoing basis.
 
Florida counties are often chartered, which means their charter outlines a lot of what they can and can't do. Cities operate similarly and both have to operate within limits set by the state.
Local sales tax is common in Florida.
 
In Colorado there is a state sales tax but counties, municipalities and taxing districts can add their own taxes.
 
The question is not if cities can charge sales tax. States, counties, and cities/towns can all charge sales tax if they are so authorized.

The question is can a city charge sales tax on a transaction with the city.

One does not pay sales tax on a parking meter. I pay the city $10 for a dog license, there is no sales tax on that. If I rent a tie-down from the city at the airport, why should there be sales tax?

Wayne provides one possible answer above... though it still stinks.
 
Be happy you don't live in Canada. Everything is taxed. It never ceases to amaze me that I'm charged Sales tax on top of a government fee even.
 
PilotAlan said:
Is it the airport charging you, or the FBO operating the airport?
If the FBO, they are required to collect tax on taxable transactions.
Whether the service is taxable under FL and Venice law is a separate question determined by the tax law.
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The invoice is from and my check is made out to "City of Venice".
 
The City & County of Denver (Colorado) charges sales tax on all moving violations! Not only do you get a fine and points, but also sales tax on top of it.
 
gismo said:
The invoice is from and my check is made out to "City of Venice".
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Generally speaking (meaning it may not apply in this particular situation), the state cannot tax transactions by/with a governmental agency. For example, the state can't collect tax on a fee or charge (like a licensing fee or a recreation center membership).
It's possible the *city* is charging sales tax on the fee.

There are exceptions, and this may be one. As with most things involving tax, it takes a lawyer to get a specific, definitive answer.
 
murphey said:
The City & County of Denver (Colorado) charges sales tax on all moving violations! Not only do you get a fine and points, but also sales tax on top of it.
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That's one of those "just because the can and do doesn't make it right" things. How long do we put up with this kind of nonsense?
 
Clark1961 said:
That's one of those "just because the can and do doesn't make it right" things. How long do we put up with this kind of nonsense?
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It will last as long as 93% of the population are sheeples... And,,, the way guvmint is spending money... Expect it to get ALOT worse before it starts getting better....

Nothing that a good ol revolution won't fix..:yes:;)
 
LDJones said:
Do you think any govt entity would allow a loophole that would prevent them from collecting a tax!?! :no:
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Senate committee advances tax-cut bills




By The Associated Press
This article was published April 18, 2013 at 11:14 a.m.



leginline.jpg






LITTLE ROCK — Arkansas lawmakers are moving closer toward finalizing a package of tax cuts that will eventually cost the state about $120 million a year.
 
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