MSDs taxed?
At least in ny, yes. Iām upside down by $700 on a GLE in ny bc of it and an x6ā¦
Why would MSDs be taxed? They are not part of the sales price, incentives or fees
NY doesnāt allow MSDs, but will tax them if used from out-of-state deals?
Oh, I totally forgot NY doesnāt even allow them lol
They are taxed for bmw and mb for sure. Nys does tax them. They are shown as part of cash structure
They donāt go to some ārefundable security depositā field, like on Volvo?
They do. I think it should be taxed for Volvo too. Iāve just never had an issue with it
The idea for ny is that you are earning interest in these, so they want a piece of that interest
You are not earning anything. You are paying less interest for lowered MF and it is not the same as earning.
For nys, it is considered earning
Right here! Readingā¦
Well, well, now. Not taxable according to the NY Dept. of Taxation!
The following charges, fees, and incentives are generally not subject to sales
tax:
ā¢ vehicle registration and title fees if the amount charged by the dealer is
the exact amount charged by DMV and the charge is not included in
the monthly payment (see Vehicle registration and title fees, on
page 8);
ā¢ certain documentation fees (see Documentation fees, on page 8);
ā¢ any security deposit that is refunded to the lessee at the end of the lease
term (see Security deposits, on page 8);
ā¢ the charge for āgap insuranceā if the charge is reasonable, separately
stated, and not included in the monthly payment; and
ā¢ any rebates, discounts, or similar incentives provided by the vendor
(usually the dealer/lessor) and not reimbursed by the manufacturer or
any other third party.
From page 8:
A charge by the dealer for a refundable security deposit on a leased vehicle
is considered collateral security and is not subject to sales tax. However,
when the lessee returns the vehicle at the end of the lease, any portion of the
deposit not returned to the lessee is subject to sales tax at that time.
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No nj doesnāt tax msds. My clients are getting bumped, is the outcome
Does this apply to dealers based in ny only? Nj doc is definitely taxable
It applies to cars registered in NY, Iād think. So, should not matter where the dealer is.
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Yup, that would be my presumption, too, especially since the sales tax applies based on registration.
I have experience building lease calculators in excel to try and match different desking tools so my math matches exactly what the dealer sees. I usually iterate the calculation 10 times to get the right net cap cost and payment. Anything less than that and the payments are often off.