BMW - NY vs MN lease tax question(Out of state lease) - Urgent help needed please

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1

Hello

I am leasing a BMW from MD, but I live in MN. They seem to have difficulties doing the tax calculation and see that they have used NY state to come up with numbers. I know both states tax the total of lease payments but the numbers dont match up.
I know the tax rate in NY is higher than MN. But are there other differences I have to be aware of?

My monthly payment is $499.10 for a 36 month lease. The total of those payments is $17967.6. So, the tax for MN should be $1212.81(6.75%). But they are quoting a number of $1711.62 for tax. That gives me a tax rate used of 9.5%. That seems to be the NY tax rate.

AM I correct or is there anything else I am missing or something that I am not accounting for? I need to finish the paperwork today before my incentives locked expire on the 31st.

2

Certain states also tax incentives given to customers (as opposed to incentives given to dealers) and the bank fee. Are you just taxing the depreciation to arrive at the $1212.81 number and does MN tax incentives given to customers and the bank fee?

3

Good point. I am not sure if MN taxes bonus cash/incentives, which in my case is $3000.

Also, the CA mentioned that they use NY taxes, since it is similar to MN in terms of lease taxes and the extra tax I pay upfront(9.5% vs 6.75%) will actually be refunded.

4

Once your contract hits BMW Financial any errors will be fixed. If your overcharged you should get a refund, under charged you will get a bill. I would let the finance company deal with this and not the dealer who may not have experience with a MN lease.