Forbs was nice enough to inform me on the appropriate steps to take.
It’ll just be a pain, but what isn’t a pain 
I’d like other opinions since this situation is so complex :/.
Situation: Bought my lease from Kia which included the sales tax in the buyout price. Sent check for the full amount (this included the sales tax) and received joint title from Kia. Brought title to the DMV and they said no information on sales tax was inputted and I had to pay AGAIN (looking at the joint title, the “Fees paid” part said “None”).
The 2 possible solutions I’m thinking are these.
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Continue with my process of requesting a refund from AAA (DMV) and provide the “Tax ID Number” (which they told me to call Kia and get, to show I paid sales tax already) AND a notarized letter from Kia saying everything was paid in full (should be arriving soon).
Then, fill out a CDTFA 101 form (not sure the DMV one or the Rev 18 (9-19) one… guessing not the DMV one?) and input the sales tax price from the Kia buyout letter. -
Call Kia and demand a refund on the sales tax since they screwed up and never included it on the joint title.
Then, fill out the CDTFA 101 form (the DMV one) and include the price that the DMV charged me once I switched the title to me.
Your situation is same as my situation. The lessor wanted the sales tax money. But if you can prove that you sold your vehicle within 10 days of receiving the title, the CA CDFTA will cut you a check (with proper explanation).
In my case over a month had elapsed because the entire time I was waiting for a title. Carvana didn’t accept a title “signed” to me, so I had to turn it into AAA to get a new title printed. They only wanted a “new” title… For me, because I explained that the entire time I was waiting for the title I was still eligible for refund.
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so you were charged sales tax twice? Because I was charged by Kia AND the DMV (AAA) since Kia never informed them that I had paid it and the joint title said “Fees Paid: None”
Once… US Bank made me send them for car+tax
They sent me a check to mail/turn into DMV (you can see the check i scanned above)
After I turned the check into DMV i filled in a refund request.
Ya your situation is a bit different, because I was charged twice for sales tax instead of once.
I have an ally lease (Alfa). Anyone know if they can work with that too?
It is important to get an invoice detailing the price, fees and SALES TAX from the dealer. You need this proof to show it to DMV. This way they will not bill you twice. Get Dealer’s Tax ID number also.
Well I got the invoice from Kia’s website for the buyout. They just failed to inform the DMV. I already paid twice so I’m going to give the dmv the tax id number along with other supporting documents.
My only issue is that the cdtf form won’t be good because they won’t see a sales tax
Victory. After 6 months they have sent me the notice that my check is in the mail. CDTFA can **** a **** **** with their pathetic attempts to steal my money. Guess they thought I would just piss off but they were…incorrect.
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This is excellent news! I’ve been quietly following your saga as I go through the same with Kia Motor Finance. The difference (unfortunately) is that my buyout wasn’t through a dealership – so I have to rely on the nightmare of Kia Customer Service reps who seemingly communicate with their “Tax” Department, who apparently I cannot speak to directly. They’ve had all paperwork for months (including the letter from CDTFA indicating that the funds can only be released with Kia’s cooperation), and Kia just keeps kicking the can down the road…
Need a little help with my situation
brief backstory
Bought out my lease through Kia (didn’t go to dealership, sent check to Kia) and the taxes were included. Went to DMV to transfer title and had to pay taxes again because Kia failed to inform them I already paid it. Sent all proper documentation and proof that I deserve a refund since I sold it within 10 days of the new title and they sent me this letter.
Here are my questions:
- Why is Kia responsible for having to “pay me back” on the sales tax refund?
- Are they required to do so? On the letter it says “they may”.
- If they are required and refuse to, is taking legal action in small claims court even worth?
Thank you for any and all feedback/help/opinions
I saw your PM a little bit late. I’m not a tax advisor nor cpa so take this with a grain of salt, just my opinions only.
Do you have the purchase contract with dealer (showing car+tax) and proof of payment (showing you paid the car+tax amount?
Do you have the proof of payment with the DMV showing you paid them tax also?
With the two above, it should be fairly clear cut. Write a letter to the Kia dealership asking them to refund you and show that DMV made you paid sales tax (again)
And keep track of all the docs
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So, when I bought out the lease, I followed what the lease buyout was that Kia had through their website. I sent a check to KIA (no dealership was involved) and that was all. I was never given any confirmation, letter, something saying congratulations or anything (it was really weird…). So I don’t have any purchase contract, but I’m sure they can look it up no?
I do have proof of payment through the DMV.
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You suggest I write a letter and mail it to that specific dealership? Do I write that I want a refund due to the fact that I paid twice?
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IF I get a refund through KIA, do I ask for a refund through the DMV as well? I shouldn’t have paid taxes at all because I sold it within 10 days.
I’m in the same boat as you with Kia (bought out lease and paid Kia tax directly through KMF website). They did send a bill of sale with Title itemizing sales tax though, so I didn’t have to pay a second time at CA DMV.
Since you paid tax twice to different entities, I believe they have to be treated separately:
- The tax you paid to Kia directly. CDTFA cannot refund this UNLESS Kia Finance completes Form CDTFA-101 – which requires Kia’s CDTFA (seller’s permit) account number at the top right of the form, and a Kia rep’s signature at the bottom of the Form. According to the CDTFA Senior Tax Auditor I spoke with, this Form allows CDTFA to refund Kia (who will then refund you). Alternatively, written permission in the “Basis for Refund” section can include Kia’s written authorization for CDTFA to issue the refund directly to you. Something like this:
"Lessee ___ sold vehicle (VIN # ____) to third party within 10 days, and is therefore exempt from tax per Regulation 1610. Please remit tax refund directly to the Lessee: Your Name and Address, Your CDTFA Acct #: ____; Your CDTFA Case #: ____ " (from the CDTFA rejection letter you already received)
- The tax you paid directly to CA DMV. This should be refunded directly to you by CDTFA after you complete and submit Form CDTFA-101-DMV, which is not the same as CDTFA-101 mentioned above. This form can only be used for taxes paid directly to the DMV by the refund applicant.
Folks on this thread seem to have had frequent success with #2, but rarely #1 (except @bsmith1 )
One issue that I am dealing with KIA, is that not only did I not get a bill of sale, but under the “FEES PAID” section of the title, it said “NONE”… which means they inputted it incorrectly.
I believe the “Fees Paid” section at the top of your CA title has nothing to do with tax, as mine also said “None”. This makes sense in my case, as it was a physical Title that was issued/generated at lease inception (see “issue date” on Title) and held somewhere by Kia Finance until Lease Buyout. That’s also why it took many weeks for them to sign and send it after I paid in full. Some manufacturers do Electronic Titles in some states (my Audi years ago, for example), but not in my case with Kia.
So at least in CA, I think the Title itself will have no documentation of taxes paid, just the “purchase price” (not including taxes) handwritten on the back side.
One more success with 2019 XC90 Volvo buyout (myself) and then selling with lessor-released title to My Car Auction. My original plan was to go with Driveway and make some money, but after stringing me along for 3 weeks they suddenly said lessor-released titles weren’t okay. With the market somewhat collapsing (carvana was offering 36k), I took My Car Auction’s offer at $41 and change. There was a bug thru their website which I had to call about, but once that happened the inspection took place a few days later, along with check issuance and signing some forms. Handed over the title, but still had both keys. Tow truck came two days later and picked it up, seems like they’re taking it to Mannheim in Anaheim. Very minor loss on my end but glad to just get it off my hands as we had no more use for the last 6 months of the lease.
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Yeah I have been away so did not see the PM or mention here. I replied to the PM questions but yeah, as mentioned above, if you paid the tax to the dealership directly (the case with Infiniti and Nissan for sure since you cannot buy out the lease from anyone but the dealer), you have to have the dealership request the tax refund on your behalf. A legally questionable position that I was ready to take up in court but in the end I got them to relent and pay me with the dealership’s help. If you pay the tax directly to DMV after getting the title in order to get the clean title, then you get the money back by filing the request as mentioned above (which is what I did and got denied and lead to my Quixotic yet ultimately successful 6 month quest. Pieces of ****…thought I would just go away and give up 
)
Exactly the letter I got. In fact I would not be surprised if that letter says Kristen Ly at the bottom where it is blurred out.