New Lawsuit in Texas against Dealerships, and Banks.
In Texas, you pay FULL sales tax UPFRONT when you lease a car.
If you exercise “option to purchase” clause on your contract, you’re NOT supposed to pay sales tax again.
Turns out, banks & dealerships are keeping tax credits in our name and making us pay sales tax when we exercise “option to purchase.”
If you’ve ever bought out your leased car in Texas, you might be owed a refund.
I knew this made no sense when it happened to me last year.
How can such a conservative state like texas charge us sales tax twice on our lease when we purchased it?
I signed up since i was forced to pay sales tax when i exercised my option to buy, and Paid $2,800 in taxes…smh at least we’ll get that back now.
Figured some of you had a similar situation, hope this helps:
Thanks for sharing. It’s about time upfront lease taxes on the full selling price are done away with through legislation. See timely reminder from @amtank
Paying sales tax on any used car - or any used item for that matter - should be illegal in all states. We need a one and done rule. Pay sales tax on an item once. After that, no mas.
Low tax state is just a political talking point. Every state gets their tax money. Whether it be state income tax, or taxing leased vehicles like they do in TX, or high property taxes. Don’t worry, the government gets their $$$ … “conservative” state or “liberal” state lol
This is generally true. Some have high property but low or no income tax. Some have low property but high income. Florida has no income tax but has a toll road every 28 feet. It all kind of washes out in the end.
Then you have CA, IL, NY and NJ. Where EVERY tax is very high and they have toll roads and car registration is absurdly expensive.
Like paying property tax for renting house