Taxability of Motor Vehicle Lease Options in Wis. Determined.

The article discusses the exemption from sales and use tax of a motor vehicle lessor's product Lease Excess Wear Protection Waiver (LEWP) as determined by the Wisconsin Department of Revenue. The customers were offered to either pay for the LEWP upon signing of the lease, or include the cost into the monthly lease payments. The exemption from tax was determined because the charge for a LEWP was both optional and separately stated in the lease agreements.