I traveled recently and rented a car. The total cost came with many, many fees/taxes. Reviewing the sales receipt it seems I was charged tax on the insurance coverage I bought from the rental agency (yes, stupidly expensive insurance but I did it).
My question is, should sales tax be applied to rental car insurance? It seems a no to me but I am not sure.
If it matters this was in New Jersey.
These things vary by state.
Yes for New Jersey, see section 92 of:
Well, that sucks.
Thanks for the answer!
Yep. New Mexico is a bit of an outlier in that it’s not a sales tax, it’s a gross receipts tax. Which winds up hitting all sorts of services that might not be taxed in other states. (The gross receipts tax on top of all the other fees and taxes for something like cable television seems like a particularly egregious example.)