Hello,
In most states Leasing Companies have to pay the State their Sale Tax on any vehicle they “buy” from the manufacturer/dealer before they can go out and lease the vehicle to a lessee (who will then reimburse the leasing company by paying their taxes either on the price of the car or on monthly payments depending on the state).
Does anyone here know how does this work in Florida? Dose the Leasing Company have to pay the 6% sales tax when “buying” the vehicle from the manufacturer? I know certain states exempt bank and some dealer from having to do that, but I know some states don’t.
Your description is wrong. Leasing companies (banks) don’t “buy” any vehicles from manufacturers beforehand or any inventory. They only “buy” the vehicle when a customer is ready to buy/sign a lease.
The point is still the same. The Leasing companies are still “Buying” the vehicle and “leasing it” to the lessee. The “buying” from the manufacturer/dealer triggers sales tax in most states (some exempt leasing companies). I most states the leasing company pays the sales tax and gets reimbursed by the lessee (either upfront like in NY/ Texas, etc, or monthly).
aren’t registered resellers generally exempt from sales tax themselves (they just collect it from whoever they resell it to).
why would a leasing company be any different in that regards (and probably goes to why some states charge sales tax on the full price of the vehicle, and not just on the lease amounts)
I know dealers are. But several states do not exempt leasing companies…they are not the original sellers…they are simply buying a vehicle and leasing it out.
I don’t think it matters if the bank is the original seller or not, at least in CA. Businesses are tax-exempt and do not pay sales tax if they plan to resell the item. An example is a business buying from Costco. The business doesn’t pay Costco any sales tax, but will collect the sales tax when they sell it to a consumer, then the business will pay it back to the state afterwards (usually quarterly).
It matters in several states. In certain states the only way to get an Exemption from paying sales taxes from motor vehicles is if the Financing Company is registered as a dealer in that state. I’m not sure how Florida works.
What are you getting at…are you trying to see if you’re being taxed twice, directly and indirectly? I’m not sure what it matters if that’s not your line of thought. Maybe I’m missing something.
I’m trying to figure out how much, if anything I can get in credits for Taxes already paid by either the Lessor or the Lessee in Florida on a lease I’m assuming in Texas…
