I am moving to TX from NY but am not selling my house in NY.
I have 3 leases that end next year and definitely plan on leasing again.
Is it going to be cheaper to register the leases with my NY address or with my TX address?
I remember reading something about leasing in TX being more expensive because of the tax being charged on the entire selling price as opposed to just the amount of the lease cost.
Can anyone advise?
Also, for NY inspection reasons, I will have to only do 2 year leases as l will need to have the car present at the inspection station to plug in to the OBDII port once the car is 3 years old.
So that creates another factor - is it cheaper per month, inclusive of all taxes and fees, to do a 2 year NY lease or a 3 year TX lease?
When a nonresident moves into Texas with a previously vehicle, he/she will owe the $90 nonresident tax when registering the car (assuming you meet the timing requirements). If a resident leases a car in Texas, sales tax is due on the full purchase price of the vehicle (unless you can get tax credits). If a resident goes out of state and leases a vehicle, he will owe sales tax on the full purchase price of the car when registered in Texas. Looking at it from just the Texas side, from a pure sales tax perspective, you would want to lease the car out of state when you are still a nonresident.
So just to be clear, you are moving from NY to Texas and one of the biggest factors of demonstrating residence in a NO Income tax state is to have an in-state license and you don’t plan on doing it???
This is a good point. Don’t save 2k in car taxes to give up 20k in income tax. If NYC tries to make you pay income tax, your argument against paying is gonna be I was just commiting tax fraud against Texas but I totally promise I’m not trying to commit tax fraud against NY.
Seems like every week someone comes on and asks about registering and insuring a car where they don’t live. Search the forum for all the issues, it’s been discussed ad nauseum. But for you, unless you aren’t working, I can’t see the benefit from playing the car registration game.
I will be residing half the time in NY and half the time in TX so I’m not sure where to register for maximum tax benefits. Because I will be residing in NY, I am not sure if I will update my residence, or if I have to.
2 out of the 3 cars I lease will be in Texas so I am seeing where I will save the most money with my residence not changing.
My advice is to hire someone to advise you correctly based on all your facts. Sales tax on a leased car is minimal compared to potential state income tax or property tax in each state with and without a homestead exemption.
