I live in Houston, TX. No good deal and the sales tax is charged for the whole price tag not just the lease cost. I was wondering whether I could lease a car from a dealer in SoCal or nearby states (like Louisianan) and bring back the car. In this way, it could be a better deal and don’t have to pay tax for the whole price tag.
Any advice?
Sales tax is applied to registered address of vehicle. So no you can not.
On the other hand, you can still find great deals in Texas. What are you looking at currently?
You would have to have a residence in CA or AZ.
Even if OP created a residence in another state, when the car is brought into Texas before a certain amount of time has elapsed, OP is still liable for full sales tax.
If you have a business, 2nd home, relative, etc. at another state/county, you might be able to register it there if it’s more advantageous.
I am currently looking at 2020 Sonata Limited Trim.
Thanks! It seems just a dream for me…
My wife lives in CA. Maybe I can use her residence info to lease a car and then drive the car back. By the way, when you say “when the car is brought into Texas before a certain amount of time has elapsed, OP is still liable for full sales tax”, how long is the Certain amount of time?
Again, you can’t do that. It’s tax evasion.
Motor vehicle use tax applies to motor vehicles purchased outside Texas and used in Texas by residents or other persons who are domiciled or doing business in the state. [Tex. Tax Code Ann. §152.001
Motor vehicle use tax must be paid on motor vehicles registered under a reciprocal agreement with another state, by the person doing business in Texas, and must be paid on or before the date the motor vehicle is brought in-state. [Tex. Tax Code Ann. §152.043 ]
The lessee of a motor vehicle purchased out of state and brought in-state for highway use is liable for use tax based on the purchase price, without regard for depreciation, but a credit is allowed for tax paid out of state.
[Tex. Admin. Code §3.70 ]
A new resident can bring a motor vehicle into Texas and pay a use tax equal to the lesser of $90 or 6.25% of the total consideration paid for the vehicle, provided that the motor vehicle is eligible to be issued exhibition vehicle specialty license plates and that the motor vehicle was previously registered in another state. [[Tex. Tax Code Ann. §152.023 ]
However, you are not and will not be a new resident.
No, no, no. This is illegal and tax evasion.
Thanks. I guess the only way is to get tax credit (if any) from a dealer
The number of days is as follows:
The tax is due within 30 calendar days from the date a vehicle purchased outside Texas is brought into Texas for motor vehicle use tax.
Honestly, you’re going to spend more time and money on this trying to figure out a way to not pay the tax than just buying a car and dealing with it. It’s part of living in Texas.
Sales tax credits, or find a make or model that lease well enough to absorb the sales tax. Reach out to @IAC @Electric to see if he has any good deals for you. Specializes in Texas and sometimes has available deals with Tax credits or loaners on BMWs and other brands.
Unfortunately, she wants a Hyundai, and we don’t work with Hyundai or have any contacts.
Also, BMW tax credits are very limited. They were only at the end of the year, and it was a dealer’s discretion to issue them or not. Depending on MSRP, the credits really only stretched to about 15 cars per month.
A one pay may yield a reduced tax rate, but it’s not a “credit” by the definition of what one is.
How about Genesis G70 with prestige/sport package? All I want is a sedan with 360 degree camera. Of course, the more features the better. That is why i go to Hyundai for it, since BMW, Benz, Audi charges way more on the feature upgrades.
As I’ve mentioned previously, we don’t work with Hyundai or Genesis.
I just talked with AUDI, Volvo, Ram and Ford dealers during the weekend, all of the dealers had tax credit left. I did not contact any Other dealerships, but I believe they should have certain amount of tax credit left for Feb, since Feb usually is not a hot month for new car sales. Just ask for it.
The taxes saved on a Hyundai by setting up an llc in another jurisdiction are not worth the hassle of registering and insuring the car as well as incorporation fees. Next time you choose to buy a Lamborghini, then you should consider being creative.