In Reply to: Re: Sales tax on lease posted by Ko on October 20, 1999 at 13:45:09:
I live in NY and have never heard that. I was always under the impression that you paid the tax on the payment, when you made the payment. The dealers give you the option of paying the tax up front, however, they probably just keep the money and earn interest on it, only giving it to the state with each payment.
: There are one or two states that are the exception (I think OH , TX??) I probably read it in some lease guide in a bookstore, when I was researching this same topic... BTW in NY you pay the whole sales tax on all monthly pmts upfront (not taxed on individual pmts ie $450/mo +tx) but buyers can roll that tax amount due into their lease (thereby paying finance charges on tax).
: : Thansk Scott, I need to talk to this dealer who is trying to screw me up.
: : : You pay tax on the monthly payments. So if your payment is $500 a month, with a 8.25% tax rate...then your tax would be $41.25 for a total of $541.25. Thats how it worked on my lease here in California.
: : : -Scott
: : : '00 323Ci (status 150)
: : : Titanium/Black
: : : : In leaseing a BMW does one pay state sales tax on the entire cap cost or just on the differecne between the cap cost and the residual value? Please advise. My dealer is saying I have to pay sales tax on the entire amount and he will role the tax into the lease payments.