NY Vehicle Leasing Company Scores $2.8 Million Sales Tax Refund

A fleet management company may recover nearly $3 million in New York sales tax it overpaid because it’s impossible to know the actual amount of tax due until the vehicle leases end, a state appeals court held Thursday.

Gelco Corp. argued that it should be allowed to adjust its sales tax payments based on terminal rental adjustment clauses in its leases, which modify the total rent due based on the vehicle’s value when the lease is up—sometimes years later. The company sought to reclaim $2.8 million in sales taxes it says it overpaid from 2012 to 2015.

The statutory phrase ...