Why is the rental tax income or expenses not being reported?

State & local tax is considered a pass through as the service provider remits what is collected. Therefore, we are not including it in the 1099-MISC income amount and it is not shown on the income or expense sections of the Year-end Tax Statement. See page 4 under “State or local sales taxes” at https://www.irs.gov/pub/irs-pdf/i1099msc.pdf.