Personal Property Expense (PPE) is an owner-paid expense payable to the taxing district(s) on all equipment located within specific geographic tax jurisdictions. The Personal Property Expense is based on the assessed value of the sum of all equipment owned as part of the valuation and assessment date, generally January 1st.
Due to this additional expense imposed on the owners of the equipment, it is necessary for leasing companies to include this expense in the lessee's monthly rental charge. Most leasing companies determine the monthly charge in the same way, however, they do not all communicate this additional charge to their customers in the same way. The Personal Property Expense you see on your invoice is the same figure on your quotation and is determined simply by averaging Modular Space Corporation's annual expense per building, per size in each taxing district.
Personal Property Expense is the same expense you would pay if you were to purchase the building directly from a leasing company. PPE is an owner-paid, non-direct tax on equipment imposed by your state and derived by your specific taxing jurisdiction, which is, in most cases, based on the physical location of the unit. Modular Space Corporation can in no way influence the tax rate, but pays close attention to the assessed values of the equipment in an effort to keep the expenses fair and equitable. Therefore, Modular Space Corporation is in no way profiting from this charge, it is passed on to our customers simply as a cost of doing business with a leasing company.
If you have more questions or comments regarding Personal Property Expense, please call 1-800-980-7447.