The subject pretty much says everything. This took place a few years ago for a Volvo lease so it’s too late to say don’t sign the contract. I insisted that I want to pay tax/fee upfront, apparently they didn’t pay. I had to pay the price to the local DMV for sales/use tax.
It depends on the state, most do not pay Tax Up front unless you are getting an Incentive from the manufacturer.
Your Monthly payment should include Tax though. So it’s gotta be higher than $470
Sales/use tax was capitalized and then you paid a cap cost reduction. It makes no difference if they did this or didnt capitalize it and showed a smaller cap cost reduction.
My state is VA which requires tax to be paid upfront as far I as I know
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Tax was paid upfront.
if that is the case, why did I have to pay the VA DMV again?
When did you pay VA? On buy out? For property tax?
DMV said I’d have to pay the unpaid sales/use tax when I tried to buy it out. No it was not property tax, I paid that separately.
When you first registered it, didn’t they ask for Tax money?
For the balance of the buyout? Thats typical. I dont believe VA taxes the purchase price upfront, just the lease cost.
Edit: nope, VA taxes full value
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registration was done by the NJ dealer, and I was residing in VA.
Get a copy of the receipt the dealer paid and take it back to VA and say gimme refund.
From VA dmv:
If you buy the vehicle, you must re-title the vehicle in your name and pay Motor Vehicle Sales and Use Tax (SUT), which is based on the residual value paid by the lessee to the lessor.
SUT Exemption
If you already paid the SUT when you leased the vehicle, you may be exempt from paying it again, if:
- You present proof you paid the SUT in Virginia
- The title includes your name on the lease and not a commercial entity
- You purchased the vehicle directly from the lessor, or from the selling dealer if one existed
Did you provide the dmv with proof you had paid sales and use tax?
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showed them the lease contract, they said it doesn’t show I paid SUT under itemized DAS.
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There’s a receipt showing payment, the lease contract says you paid Zero, but you got it registered so there is a receipt…somewhere.
Edit : Oh yah it’s on the lower part, I was distracted by the shiny things
The way they structured the deal, it wasn’t paid up front technically, it was capitalized (see 25 b) and then technically offset with your cap cost reduction. 25 b literally says “sales/use tax” so I’m not sure what else you can show them.
might be able to get a tax receipt from volvo financial
It gets paid upfront by the bank
I think we’ve seen this issue before from someone else trying to get a tax refund - vaguely remember issue was that leasee didn’t personally pay the tax, dealer didn’t pay the tax directly, and bank couldn’t provide adequate proof of the specific payment of the taxes to satisfy the state.
Edit: this is what I was thinking about. OP eventually got the money but took a year and a half of bureaucratic hell Getting lease tax money back from government - #29 by skrupp152
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