Sales Tax Calculation

Levy calculates rental payout remittances based on who will be filing sales tax payments with the state, either Levy or the Partner who is operating the fleet. In most states, it is required that the Partner is responsible for paying sales tax to the state since they are physically present in the location where the business is operating.

In this situation, the sales tax paid by the end-user will be 100% remitted to the partner as part of their monthly payouts.

As an example - if the unlock fee is $1 and the per minute rate on vehicle is $0.25, then a trip below would cost $1 + $0.25 * 58 minutes = $15.5. The total with sales tax, assuming an 8% sales tax rate, would be $16.74. The sales tax paid by the customer is $1.24

While the customer was charged $16.74, the total amount deposited from our payment processed (Stripe), will be less. This is calculated by their transaction fees, which are $0.30 + 2.9% of the transaction. The net payment amount then becomes $15.95.

Since the total sales tax paid remains $1.24, this will be deducted from the net payment amount and set aside for future remittance to the state. Thus, the net payment amount less sales tax is $14.71 ($15.95-$1.24).

When payment remittances are calculated, the Partner would receive 80% of the net payment amount less sales tax plus the entire sales tax amount collected. This would be $13.64. ($14.71 * 80% + $1.24)

When payment remittances are calculated, the 20% percent share to Levy is calculated based on the net payment pre-tax amount. In this example, Levy would receive $3.10. ($15.5 * 20%)