Hi,
I leased a 2014 BMW in Georgia. My payment was $480 including tax.
I re-located to California and contacted BMW to change my “garaged” address.
This changed my payment from $480 to $530/mo - went up by $50/mo.
Question is: isn’t GA a state that collects all the tax on a lease up-front? So, did I already pay taxes on 36 months in GA and now I’m paying taxes to CA for a second time?
What can I do to avoid double paying the taxes in CA ?
Call the dealer you bought the car from or check your contract if you have it handy. I’m sure that will be quicker than waiting for someone here to answer.
The only thing you would technically being paying double is registration since you paid to have it registered one in GA and now you need new registration and plates in CA.
There is no reason your tax amount should change!
Tax on a lease changes based on where you live and your local tax rate.
GA charges taxes upfront at lease signing on the total lease amount. So, I already paid this in GA in 2014. It’s rolled into the cap cost or you can pay upfront of course. 6%. ( About $1,000 in tax on $17,000)
State of CA does not charge tax upfront on a lease. Instead, CA charges tax monthly on the payment. 8%.
So, I paid $1,000 tax in GA. And, now I’m paying 8% tax on the same payment AGAIN in CA.
I will go back over my paperwork tomorrow and post what I find. Just thought someone on this forum must have gone through a similar situation.
So,
I recall reading on here about someone having this issue in VA when they tried to move the vehicle to another state. There was something about the state having to have an agreement with other states about recognizing the tax already being paid.
You might want to try contacting the GA DMV to see if they have any info on what to do. You could also try asking on the Bimmerfest forums.
I had similar, moved from IL to FL. I got the royal shaft. In IL at the time (nearly 3 years ago) they charge sales tax (8%) on the full cost of car (they revised it year after to only be on the leased portion). Moved to FL this year and now have to pay 8% use tax. Confirmed with FL Tax Revenue that they don’t give credit for sales tax on leases, only for purchase. Paid 8% sales tax on total value of car and now paying 8% on lease - egads. Call your state Tax Revenue office to confirm, but you may be in similar situation in CA.
Why do you want to change your address in BMW ? Just keep it as is and forward your mails to CA.
He would need to register the car in CA so it can be insured in CA.
Registration is not really a problem – I could have easily left the car registered in GA , using my parents address and just left it at that. A lot of people do exactly this, I’m sure. Have a friend who does it.
Problem is Insurance. Taking a huge risk.
If I keep GA registration, I have to keep GA insurance.
If there’s an accident in CA - the insurance company can easily avoid paying any claims bc I misrepresented where the car was being used and garaged.
I’d rather just pay the extra $50/mo than to get myself into deep **** later down the road.
Why you can’t just walk in CA DMV and register your car with the lease paperwork that shows you have paid Sales tax in GA?
My understanding is that Georgia doesn’t actually have a sales tax on cars. It has a “Title Ad Velorum Tax” (TAVT) which is a tax on titling of the car, not sale of the car.
“Vehicles purchased on or after March 1, 2013 and titled in this state will be exempt from sales and use tax and the annual ad valorem tax. Instead, these vehicles will be subject to a new, one-time title ad valorem tax that is based on the value of the vehicle.”
That’s why a lease is Georgia is such a terrible idea. When you lease a car it’s first titled in the lender’s name. If you were ever to want to buy the car after the lease term, you are issued a new title with your name and have to pay the TAVT again since the title is now in a new name.
So when you moved to CA, you had to pay CA’s sales tax since “sales tax” was never charged in Georgia.
To get around some of these, in Georgia and a few other states, BMW has “Owners Choice” so you are not double “taxed” when you acquire the car and if you decide to buy it after lease end.
I did register my car in CA . DMV doesn’t care about the tax. They don’t require tax upfront in CA anyway.
BMW automatically changes the payment to ADD CA tax when I change the car’s garage address with BMWFS - the leasing company.