anyone ever assume a lease before... sales tax question
11-04-2005, 04:29 PM
#1
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anyone ever assume a lease before... sales tax question
i'm about to assume a lease for another benz and now i'm coming up with a sales tax issue that no one seems to have a straight answer for... The cars coming from ca to nj, and the payment already includes sales tax... but when i register the car in nj they're telling me that i might have to pay sales tax on the remaining payments, which with 33 months left of 1150.00 a month turns out to be about 2300 for tax... My DMV tells me that they will send mercedes the bill for the sales tax and that mercedes will probably either send me the bill or they will adjust to payments to the new sales tax... the confusing part is that mercedes is telling me that i will have to pay the new sales tax and even though the 1150 payment includes sales tax already i will have to pay that payment as well, which basically means i'm paying sales tax twice... DMV sales thats illegal and they can't do that... Who the F do I believe here? since basically the car is registered under mercedes why would i need to pay tax again?? Its sorta like saying if i lived in CA and moved to NJ and registered the car, i would pay sales tax again. Thats basically be what i'm doing, so i dont get it
11-08-2005, 01:17 PM
#2
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2008 M6 Vert
I brought a car over from NY and here is what I was told. In NY you have to prepay the tax based on the total of the lease payments upfront. In CA, the sales tax is based on the monthly payment and payable monthly.
I had to effectively pay the tax twice when I moved over to CA. But the CA tax is only on payments going forward.
In your case, I suspect you wont have to pay CA sales tax anymore since it payable monthly. In CA, you can contact the Board of Equalization for a ruling.
http://www.boe.ca.gov/info/contact.htm#email
Hope this helps. Good luck
I had to effectively pay the tax twice when I moved over to CA. But the CA tax is only on payments going forward.
In your case, I suspect you wont have to pay CA sales tax anymore since it payable monthly. In CA, you can contact the Board of Equalization for a ruling.
http://www.boe.ca.gov/info/contact.htm#email
Hope this helps. Good luck
11-08-2005, 11:20 PM
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CA sales tax on a lease is paid on the monthly payment. Once the vehicle is transferred out of CA there is no longer additional tax owed to CA.
Your new sales tax in NJ is based on the depreciation.
Another option you may want to consider is a new re-lease. This would mean paying of the current lease and writing a new lease on it.
You can see what your re-lease payments would be by getting instant quotes on LeaseCompare.com.
Your new sales tax in NJ is based on the depreciation.
Another option you may want to consider is a new re-lease. This would mean paying of the current lease and writing a new lease on it.
You can see what your re-lease payments would be by getting instant quotes on LeaseCompare.com.
