When state and local governments grow and expand, so does their need for capital equipment and related services.
To help meet the increasing financing demands faced by state and local government, Integrated Parking Solution provides a government-focused finance program.
- Integrated Parking Solutions provides point-of-sale finance programs to state and local governments for capital equipment and services.
Integrated Parking Solutions’ Tax Exempt Lease Purchase Agreement
Through a tax exempt lease purchase agreement, Integrated Parking Solutions can provide uniquely structured financing techniques for state and local governments throughout the United States.
Our flexible payment options provide financing which can be spread over the life of an asset while not violating constitutional or statutory limitations of the issuance of public debt.
The Tax-exempt Lease Purchase Agreement is in substance an installment purchase agreement whereby the government entity acquires title to the equipment and on receipt of the final payment, a bill of sale is released to the government entity, free and clear of any lien of security interest.
- The tax-exempt Lease/Purchase Agreement can be set up on monthly, quarterly, semi-annual or annual payments.
- The tax-exempt Lease/Purchase Agreement is also subject to an annual fiscal budget appropriation of funds by the Government Entity.
- The Government Entity has the right to terminate the lease if funds are not appropriated to provide that particular governmental service that is being performed by that capital asset.
In addition, the tax-exempt Lease/Purchase Agreement offers several advantages over traditional financing methods. These include:
- Tax-exempt lease/purchase obligations are not considered debt, but a current expense. Thus, a lease does not impact the municipality's available debt limitations.
- A voter referendum is not required to enter into a tax-exempt lease/purchase contract.
- The lease/purchase payment is fixed at equipment acceptance and held firm throughout the lease term.
- The Lease/Purchase Agreement documentation is very straight forward and does not require lengthy trust indentures, extensive use of outside counsel, a trustee, etc.
- The Lease/Purchase Agreement enables a government to spread out the cost of equipment and capital assets over multi-year periods.
- The Lease/Purchase Agreement often is a suitable and economical method of financing for capital assets that are too expensive to fund from just one fiscal period but that have useful lives too short to justify the issuance of long-term bonds.
- Federal tax law and regulations may make a lease/purchase acquisition of a capital asset more economical than alternative methods of capital financing.
