Use tax optimization process and system

• US 6,298,333 B1
• Filed: 02/08/2000
• Issued: 10/02/2001
• Est. Priority Date: 02/08/2000
• Status: Expired due to Term

• Current Assignee: Transport International Pool Incorporated (General Electric Company)
• Original Assignee: Transport International Pool Incorporated (General Electric Company)
• Inventors: Manzi, Sharon Ann, Kakarlapudi, Raju S.
• Primary Examiner(s): Kramer, Dean J.
• Application Number:
  US09/499,789
• Time in Patent Office: 602 Days
• Field of Search: 705/19, 705/22, 705/28, 705/30, 705/31
• US Class Current: 705/31
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A computer system and method for a lessor to determine correct use tax on moveable equipment which may be subject to tax by more than one tax authority comprising inventory records for each individual item of equipment comprising an equipment identifier, equipment category, acquisition cost, depreciation, net book value, and branch; updating the inventory records to reflect each modification, improvement, disposition, and change in equipment category, and use tax paid; activity records comprising each lease event pertaining to each item of equipment; and a set of tax rules, which are periodically updated, for each taxing authority where any of the items of equipment may be leased or used, comprising sets of formulas reflecting relationships between tax due and acquisition of equipment, first leasing of equipment, subsequent leasing of equipment, length of lease term, age of equipment, and/or equipment categories. Upon selection of a tax authority and a date range, the amount of tax which is due to the selected tax authority for each item of equipment is automatically determined and, upon verification that tax will be paid, the inventory records are updated to reflect tax paid. Upon querying the system to determine availability of equipment of a selected class, delivery branch, and date range, the system preferably ranks available equipment according to the amount of use tax which will be due upon leasing.

Claims

1. A computer assisted method for a lessor to determine correct use tax on moveable equipment which may be subject to tax by more than one tax authority comprising:

creating inventory records, within an inventory module, for each individual item of equipment, the record comprising an equipment identifier, equipment category, acquisition cost, depreciation, net book value, and branch;

updating the inventory record for each item of equipment to reflect each modification, improvement, disposition, and change in equipment category, and use tax paid;

creating activity records in a lease activity module comprising each lease event pertaining to each item of equipment, the events comprising revenue generating lease, non-revenue generating lease, and termination of lease;

creating in a rules module a set of tax rules for each taxing authority where any of the items of equipment may be leased or used, the rules comprising sets of formulas reflecting relationships between tax due and one or more of;

acquisition of equipment, first leasing of equipment, subsequent leasing of equipment, length of lease term, age of equipment, and equipment categories;

updating the rules module to reflect each change, addition, or deletion of each tax rule for each taxing authority; and

upon selection of a tax authority and a date range, processing the records according to the rules to determine the amount of tax which is due to the selected tax authority for each item of equipment;

upon verification that tax will be paid, updating the inventory records to reflect tax paid.

2. Method of claim 1 wherein upon querying the inventory module to determine availability of equipment of a selected class, delivery branch, and date range, automatically ranking available equipment of the selected class, delivery branch, and date range according to the amount of use tax which will be due upon leasing.

3. Method of claim 2 wherein the ranking is displayed at a leasing agent workstation upon the querying.

4. Method of claim 1 wherein the non-revenue generating lease event is a logistics lease or a maintenance lease.

5. System for managing the payments of use tax on leased equipment to appropriate tax authorities and for optimizing the amount of use tax due comprising

an inventory module comprising inventory records for each individual item of equipment, the records comprising an equipment identifier, equipment category, acquisition cost, depreciation, net book value, branch and any use tax paid;

a lease activity module comprising activity records for each item of equipment, the activity records comprising each revenue generating lease, non-revenue generating lease, and termination of lease;

a rules module comprising a set of tax rules for each taxing authority where the equipment may be leased or used, the rules comprising sets of formulas for determining whether, when, and how much tax is due for each lease event or inventory record creation or change;

means to update the inventory records to reflect each modification, improvement, disposition, and change in equipment category, and use tax paid;

means to update the activity records to reflect each lease event;

means to update the rules to reflect each change, addition, or deletion of each tax rule for each taxing authority; and

means to select a tax authority and date range; and

processing means to determine the amount of tax which is due to the selected tax authority for each item of equipment and to update the inventory records to reflect tax paid.

6. System of claim 5 further including means to query the inventory module to determine availability of equipment of a selected class, delivery branch, and date range, and processing means to automatically rank available equipment of the selected class which is available for lease for the date range at the delivery branch according to the amount of use tax which will be due upon leasing for the proposed period.

7. System of claim 6 including means to display the ranking at a leasing agent workstation in response to the query.

8. System of claim 5 wherein the means to update the inventory records comprises a client workstation in communication with a server computer.

9. System of claim 5 wherein the means to update the rules module comprises a client workstation in communication with a server computer, and the rules module is stored on the server.

10. System of claim 5 wherein the equipment is selected from the group consisting of motor vehicles, trailers, and modular buildings.

11. System of claim 5 wherein the non-revenue generating lease is a logistics lease or a maintenance lease.