A dealer in Indiana is trying to structure a lease for me in Arizona. I am a new resident.
There is a 1.5% city tax on top of state tax 5.6%.
How does the tax get computed and where do the tax payments need to go? Hopefully the dealer figures it out, but if I can point them in the right direction…
The dealer either pays the AZ government or he gives you the title and you pay it when you register it.
As for monthlies, that’s all done by a big computer.
I leased a car in Texas, then when moved to Arizona, the tax was automatically applied to my lease, so my payment went up. You pay a large vehicle registration in Arizona, and you pay a monthly tax directly applied to your bill to whichever company your lease payment goes to.
Do you know if the tax payment went to the state and city separately, or did it all go to the state and they apportion the city tax to the appropriate city? Or did the city tax go directly to the city? That’s what we’re trying to figure out.
The AZ MVD is surprisingly friendly, can also call one of the MVD service centers. Desking software should be able to handle it?
I dont think thats something you need to figure out, thats the job of the financial servicer, i.e. bmw fs, mbfs, etc.
There may also be county tax, but again, thats all calculated/done by the financial arm, not the dealer.
Finance guy at my dealer says he has a software patch being installed Monday to handle this.
Thanks all!