Which components of a rental are generally taxable for sales tax?

The base rate, which is the fundamental cost of renting the item, is typically subject to sales tax, as it is considered the primary service being provided. Additionally, charges based on mileage or the distance traveled often incur sales tax, as they are closely related to the rental service itself. Protections, such as damage waivers or insurance options, can also be taxable, though this can depend on local laws and regulations.

Other options reflect components of the rental that may not be taxable. For instance, insurance fees and fuel surcharges can sometimes fall outside the scope of taxable items in certain jurisdictions. Discounts and promotional rates are usually applied before tax calculations are made, meaning they do not contribute to the taxable amount. Each jurisdiction may have specific rules regarding what is taxable within rental agreements, but typically, the base rate, mileage, and associated protections form the main taxable elements.