Aztec leasing- property tax?!?

Jul 24, 2015
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San Marcos, California
www.supermariocarpetcleaning.com
Real Name
Mario Vucetic
Business Location
United States
Last year I leased through Aztec truckmount and all necessary equipment for $36,000. Technically it is a lease for 66 months, but after that period I own the truckmount and the equipment.
This year Aztec wants to charge me property tax of $410, saying that the county where I live wants to collect property tax in that amount.
Does anyone have similar experience with Aztec, or does anyone pay property tax on truckmount?
 

envy

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Mar 12, 2015
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Aaron R
I have to pay that but in my case it's not Aztec that is charging the tax. It's the democrats that vote more tax on business because our county can't live within their means when it comes to spending.
 

crash1big

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Mar 18, 2011
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Last year I leased through Aztec truckmount and all necessary equipment for $36,000. Technically it is a lease for 66 months, but after that period I own the truckmount and the equipment.
This year Aztec wants to charge me property tax of $410, saying that the county where I live wants to collect property tax in that amount.
Does anyone have similar experience with Aztec, or does anyone pay property tax on truckmount?
It sounds like THEY need to pay tax on it because technically they own the property. Check your lease agreement. I wouldn't pay it unless it is in the schedule. I'm guessing it's not. They were probably unaware that there was a tax due in your area and they got notice and now they are trying to put it on you.
I never did like Aztec. They charge way too much.
 
Jul 24, 2015
27
1
3
San Marcos, California
www.supermariocarpetcleaning.com
Real Name
Mario Vucetic
Business Location
United States
It sounds like THEY need to pay tax on it because technically they own the property. Check your lease agreement. I wouldn't pay it unless it is in the schedule. I'm guessing it's not. They were probably unaware that there was a tax due in your area and they got notice and now they are trying to put it on you.
I never did like Aztec. They charge way too much.
You are right, it's not in the schedule. However, Section 9 of the contract I have with Aztec says that I should pay all taxes and fees, but that charge is not in the schedule.
They have my bank account information, so Aztec will just withdraw that money from my account. Anyway to fight this?
By the way, I am in San Diego county. Does anyone pay property tax on truckmount and other equipment in California?
 
Jul 24, 2015
27
1
3
San Marcos, California
www.supermariocarpetcleaning.com
Real Name
Mario Vucetic
Business Location
United States
It sounds like THEY need to pay tax on it because technically they own the property. Check your lease agreement. I wouldn't pay it unless it is in the schedule. I'm guessing it's not. They were probably unaware that there was a tax due in your area and they got notice and now they are trying to put it on you.
I never did like Aztec. They charge way too much.
You are right, it's not in the schedule. However, Section 9 of the contract I have with Aztec says that I should pay all taxes and fees, but that charge is not in the schedule.
They have my bank account information, so Aztec will just withdraw that money from my account. Anyway to fight this?
By the way, I am in San Diego county. Does anyone pay property tax on truckmount and other equipment in California?
 

ColoradoCleaner

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I'd email the contract to an attorney and ask for a free consultation. He could probably tell you in two minutes. Aztec is among the worst financing companies out there. I'd think you don't owe because sure you have to pay taxes and fees but they should have calculated all that out at the commencement of the contract and if they missed this, too bad for them. You agreed to a certain payment totaling a certain amount of money.

This is like a landlord tacking on extra fees halfway through your lease at a house because he forgot to factor in the annual property tax into his calculations for what he charges for rent.
 

crash1big

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Mar 18, 2011
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I did not have leased equipment. It was owned by the company (some of it financed).

Just making the point that business property was taxed.
That is my point Scott. You owned the equipment so the tax burden is on you. Aztec owns the equipment so the tax burden is on them.

You are right, it's not in the schedule. However, Section 9 of the contract I have with Aztec says that I should pay all taxes and fees, but that charge is not in the schedule.
They have my bank account information, so Aztec will just withdraw that money from my account. Anyway to fight this?
By the way, I am in San Diego county. Does anyone pay property tax on truckmount and other equipment in California?

That section sounds vague. The term "all taxes" isn't defined very well. So you going to pay my taxes too? "All" means "all" right? I think the term "all taxes" refers to the taxes you "might" owe outside of the contract so that you can continue to make the lease payments as agreed. They don't want anyone shutting you down. Can't make payments that way.

I think that you could argue that the taxes owed, are on the "owner" of the property. And since you don't actually own the equipment and the payment isn't on the schedule; they are responsible. If I were them I would try to push it off on you too. Push back and see what they do.

I'd call them and tell them your not "interested" in paying that tax and see what they do.:)
 
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envy

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Mar 12, 2015
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I lease and have to pay a tax like that. It didn't come from the leasing company though and was sent directly from the county. In my case, leased equipment counts as owned equipment but vehicles don't count.

They mailed out my form on April 13 and it said if I don't have it returned by March 15 I owe a 5% penalty that wouldn't be waived at any time for any reason.

It's corruption that they can charge late fees when they didn't get the form out before the deadline.

If yours didn't come directly from the state, maybe you don't owe it but it would be a shame to have your equipment repossessed over $400 a year.
 

Tom T 77

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Oct 26, 2015
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Thomas Tarris
I have a lease through Aztec. Not happy with it but that's a different story.

I'm in North Carolina and have to pay the property tax on the leased van as the NC registration is in our business' name even though Aztec still owns it.
 

Tom T 77

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Oct 26, 2015
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Thomas Tarris
I have a lease through Aztec. Not happy with it but that's a different story.

I'm in North Carolina and have to pay the property tax on the leased van as the NC registration is in our business' name even though Aztec still owns it.
 

envy

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Since when does somebody leasing something pay for OWNership tax on something? If you're leasing a house and the landlord sent you a property tax bill, would you pay it?

That's the exact gripe we have. It's not something anybody wants to pay but sometimes it's easier to just pay it and find ways to short them in other ways to make up the difference.
 

specializedcc

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I used to work for County Government in California and I was the Property Tax Accountant, so I hope you find this helpful.

The annual form you fill out every year is called a Business Property Statement and it lists all the property you own, possess, or control in the conduct of a business, profession, or trade. On this form, you list the year you acquired the property and the purchase amount. This information gets entered into a database (in this case at the County level) and those assets get assigned a class code for depreciation purposes. This is the basis for how the book value of each asset will be determined for each tax year.

The penalty someone mentioned is for late filing the statement. Typically, in CA it's 10% of the gross assessment. So, for example, someone who has $10,000 in business property can be penalized $1,000 for filing a late business property statement, increasing their total assessed amount to $11,000. Keep in mind, most tax rates are generally somewhere between 1 and 1.2%.

Unsecured property tax is for items that can be relocated and are not real estate. Hence, why it's called "unsecured" versus "secured" property taxes (property tax you pay for your residence).
Examples of items taxed on the Unsecured property tax roll include business property, aircraft, vessels, boats, and personal watercraft.

One caveat: The Assessor is required to assess all property owned/based in the county as of Jan 1st - called the "lien date". So, if you purchased an item anytime after Jan 1st, it escapes taxation for that year and the first year it will be taxed is the following year.
 
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Jul 24, 2015
27
1
3
San Marcos, California
www.supermariocarpetcleaning.com
Real Name
Mario Vucetic
Business Location
United States
I used to work for County Government in California and I was the Property Tax Accountant, so I hope you find this helpful.

The annual form you fill out every year is called a Business Property Statement and it lists all the property you own, possess, or control in the conduct of a business, profession, or trade. On this form, you list the year you acquired the property and the purchase amount. This information gets entered into a database (in this case at the County level) and those assets get assigned a class code for depreciation purposes. This is the basis for how the book value of each asset will be determined for each tax year.

The penalty someone mentioned is for late filing the statement. Typically, in CA it's 10% of the gross assessment. So, for example, someone who has $10,000 in business property can be penalized $1,000 for filing a late business property statement, increasing their total assessed amount to $11,000. Keep in mind, most tax rates are generally somewhere between 1 and 1.2%.

Unsecured property tax is for items that can be relocated and are not real estate. Hence, why it's called "unsecured" versus "secured" property taxes (property tax you pay for your residence).
Examples of items taxed on the Unsecured property tax roll include business property, aircraft, vessels, boats, and personal watercraft.

One caveat: The Assessor is required to assess all property owned/based in the county as of Jan 1st - called the "lien date". So, if you purchased an item anytime after Jan 1st, it escapes taxation for that year and the first year it will be taxed is the following year.
Thanks for the explanation.
Since it's a lease, should I pay the property tax or Aztec financial?
I mean, is this regulated by the law or not?
 

Pinosan

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Just pay the damned taxes and don't loose your equipment and credit. there is a reason why section #9 of the contract is so ambiguous, it refers to "all taxes" All leased property (not homes) is considered yours for tax purposes.
Aztec has been ripping off people for a long time; trust me , they know how to write a contract.