I live in NJ and I am thinking of assuming a BMW lease from a person located in CT. I have a question in regards to taxation. As I understand, NJ charges taxes upfront on leased vehicles. The prospective car has 20 months remaining on its lease. Will I be charged taxes on the amount of payments remaining (20) or will I be charged taxes on the initial price of the car - residual (36 payments)?
May be, but that was standard lease transfer process, so I doubt that exception was done for me, I think this just works this way. It is not mandatory to pay upfront in NJ, even for new lease taxes can be rolled into monthly payment
They are rolled into the cost of the lease. They are still being paid upfront, either by you or the lease company. A lease transfer from another state probably doesn’t get taxed the same or picked up on.
If you own a car and move from another state then NJ doesn’t charge you tax on your purchase price they assume the tax was paid already.
I should have stated a new lease is always taxed upfront in NJ in my last comment.
I highly doubt it doesn’t get picked up. It’s been a while since I filled out the forms myself but tax always needs to be paid unless an exemption box can be checked. Moving to the state is an exemption but if you are already a resident you don’t get an exemption for a lease transfer.
I’m leasing 4th vehicle in NJ and never payed tax upfront, dealers just roll this in monthly payments. This is good, because if you let’s say transferred lease earlier, you don’t loose money on taxes payed upfront.