If I buy a car in MD where taxes are applied on the full sale price upfront then relocate to DC where taxes are applied to monthly payments so I end up paying taxes again in DC?
Pretty much. Unless either the first state refunds the taxes or the second state gives credit for taxes already paid. Not all states do that and this is generally a hassle.
Va md and D.C. All recognize taxes paid in the other. So you would be responsible for the difference if any. I learned this swapping a lease from va to md.
Thabks @conanohasselhof do you happen to know about the DC excise tax exemption for hybrids? Does that mean the 10% tax on monthly payment in DC is waived? Also, how does this all come into play given the owner is the manufacturer financing company and not the driver? Sorry too many questions but I have not been able to get a definitive answer from researching so far.
I don’t know about excise tax sorry. It damn near impossible to get a straight answer. I wasted four hours of my life trying to get one. The assumee of lease understandably didn’t want to pay several thousand dollars in tax for a car they would have for the 14 months. They key question to ask D.C. DMV is "do you recognize tax paid in x state (md in this case).