Those states calculated tax on the sum of the base payments just like NY. However, the methodology that NY uses is different. See my posted image above…
NJ… payment tax = base payment x term x tax rate
NY… payment tax = base payment x term x tax rate/(1- tax rate)
NY computes tax on tax. If I don’t know how to compute NY or NJ taxes, then why do my calculations always match NY and NJ dealer lease worksheets unless the worksheets contain an error which they sometime do? Also, why did a NY Volvo dealer ask me to explain how taxes were calculated? My calculations match their lease worksheet. See the above post and screen shot.
Yes I do. But, they used to compute taxes on the total base payment. A friend of mine total his accord and wasn’t reimbursed unearned taxes at the time payments were based on the sum of the base payments.
6.25% x (36 x 515.45 + 3140 + 499) + 0.4% x 45,607 + 10 = 1,605
YIKES! Thanks! That gets me to…
6.625% x (36 x 515.45 + 3140 + 499) + 0.4% x 45,607 + 10 = 1,679
Now, we’re real close. But, I still believe 1,744 is too much. The difference is 65 tax and 65/.06625 = 981. Where am I going to find an additional 981 of taxable fees in this deal? Still need to see the 2,000 DAS.
You’re right… the focus needs to be on the selling price.
Lol you don’t have a clue keep doing your math. You made a bold claim about a dealer overcollecting sales tax, which is a felony I believe (not sure here) didn’t have anything to back it up. I said it’s pretty damn close to being right.
