Your assumption is right I am in Texas and would register in Texas.
Finance suggested I go with an Owners Choice lease to work around m double taxation. Thoughts about that?
I see… I actually don’t know much about the ins/outs of Owner’s choice, or what other consequences and responsibilities may be involved with that program.
Maybe one of the other folks from the South can chime in!
Edit2 above, for a demo X3 M non-competition.
I don’t think 14 percent off a demo is good…you no longer qualify for Bmw cca rebate. I think 11 percent off new is fairly great deal for this car. I know a broker is offering 12 percent on here
It’s not 14% off. If OP was getting 14% off, that actually is pretty good for Texas, @Lax854. However, this is including the $3,750 lease cash + $750 conquest, so it’s more like 8% off on a demo, which is awful. The numbers still don’t quite match, either, because it’s about $980 with nothing due at signing.
People have to remember that Texas is a different market from elsewhere. However, if you go to another state to get 2-3% more off, you’re going to pay shipping, and it’s pretty much the same thing in the end as just getting a car locally. I know it sucks, but it is what it is.
Please let us know if you’d like our help.
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That deal requires loyalty, which is a $21 difference per month. Shipping will be about $1,500, it doesn’t include taxes (approx. $4,500 - $125/month), and to bring it back to 1st due at signing, it’s about another $60 a month. It’s probably better to just stay local.
Interesting - seems like good deals out there for this. I need to take a look and test drive a Comp
Double taxation only applies if you plan on buying it after. Is this your plan? If so, purchase incentives may be stronger/qualify for better APR.
I was told that some counties are sending a personal property tax bill on leases if the vehicle is considered a rental (traditional lease). With an Owners choice lease, the vehicle is titled under the lessee and avoids this problem.
This shouldn’t be a problem, so long as it’s not used to produce income, i.e. for business purposes. Should you get a bill for some reason, you can always file for an exemption.
Automobiles and other similar motor vehicles that are generally used by individuals are non-income producing property, so an exemption is provided for those items. Leased motor vehicles are exempt if the lessee does not hold the vehicle for the production of income and the vehicle is used primarily for activities that do not involve the production of income. [Tex. Tax Code Ann. §11.252(a) ]
A motor vehicle is presumed to be used primarily for activities that do not involve the production of income if:
- 50% or more of the miles the motor vehicle is driven in a year are for non-income producing purposes;
- eff. 09/01/2019, the motor vehicle is leased to Texas or a political subdivision of Texas; or
- eff. 09/01/2019, the motor vehicle: (1) is leased to an organization that is exempt from federal income taxation under [IRC §501(a)]; and (2) would be exempt from taxation if the vehicle were owned by the organization. [Tex. Tax Code Ann. §11.252(b) ]
Sorry, should have looked into this a little further before posting. That is for county taxes, which is what OP referred to above.
However, some cities may still assess a tax if they have enacted ordinances to do so. The amounts seem small, maybe $100-$200 a year from what I’ve seen, based on value and rate.
The most relevant ones/ones that would probably come up due to larger populations are as follows (based on what I found, so don’t take this as a finite list, please):
Bexar: San Antonio
Collin: Frisco, Prosper, Richardson, Wylie
Dallas: Addison, Carrolton, Cedar Hill, DeSoto, Garland, Lancaster, Mesquite, Richardson
Denton: Argyle, Justin, Lake Dallas, Pilot Point
Galveston: League City Gregg: Kilgore, Longview, White Oak
Hays: San Marcos
Jefferson: Beaumont, Groves, Nederland, Port Arthur, Port Neches
Nueces: Corpus
Tarrant: Benbrook, Forest Hill, Lake Worth, Haltom City, Hurst, North Richland Hills
Travis: Austin
Williamson: Austin
You can go here and download Forms 50-285 and 50-286 to submit to make sure you don’t receive a county tax bill, but the city is on its own and may assess if it has an ordinance.
I’m in the middle of something at work, or I would go into this more, but that’s the basic gist of it.
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FYI and interesting discussion here (the aforementioned counties can charge personal property tax on a lease car regardless of whether you fill out form 50-285
Also, the taxes supposedly are about 1% of purchase price per year. That’s a lot (reminds me of annual registration rates in California). Texas politicians really want to discourage leasing (or perhaps the people who are making their political donations )
I have leased several BMW and never had to pay any personal property tax. Just sales tax on purchase less incentives.
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It is dependent on your city and county. Also apparently dependent on whether they send you a bill. The Owners Choice lease avoids this issues altogether
It’s really up to you to decide what you want to do. As @Electric mentioned, he’s never gotten a bill.
I personally wouldn’t trust something from LinkedIn, plus it’s 4 years old. As I noted above, the article is completely contradicted, partially by statues that went into effect in September and partially by other guidance issued by the comptroller’s office last year, i.e. much more recently.
I don’t see anything that indicates it’s 1% of the purchase price. Most of what I saw (on the Texas websites) was around $150 a year. If you don’t live in one of the listed cities, you don’t have to worry about it anyway.
I have another offer in the state, best offer so far. Paying taxes up front gets me down to about $900/mo. 7xMSD drops it to about $820ish.
I don’t mind pushing for 12%, but this feels acceptable to me.
MSRP: $838xx
Selling Price: $76xxx
Cap reduction: $77xx (9%)
Rebates: $5000
Cap Cost: $ $71xxx
Residual: $47,7xx (57%)
MF: 0.00142
Term: 36 with 10k miles per year
Monthly: $1022 all included
Down payment: $0 (first payment)
Edit: Manager agreed to 0.00142 but I don’t think his quote reflects that because I cannot get the numbers to match. Will followup tomorrow.
Approximate calculator:
Posting the final deal in case it helps someone in the future.
Summary: base MF, 10% off pre-incentive, and 7 MSDs. Curbside delivery, good enough.
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