I am in the process of buying out my wife’s 2021 GMC Yukon at lease end through my local credit union here in Florida. However, when I started the lease I lived in TX and purchased in TX, so the full tax was assessed on the vehicle.
Now that I am doing the lease buyout and live full-time in FL, does it matter how much tax was assessed on the vehicle at the lease inception?
Or am I required to pay tax again on the full buyout price?
UPDATE Long story short, here is what happened.
I was forced to go to a GM dealership to transact the lease buyout, I was not allowed to pay GM directly in any way.
GM will not allow the vehicle to be traded into a non-GM brand
GM will not allow a 3rd party or private-party sale
Basically, either give them back the vehicle (and my equity) or go deal with a GM dealership to essentially buy the vehicle like used.
Yes, I had to go through dealership financing as well, despite having a preapproval from my local Credit Union. The dealership refused it. Which means I had to re-negotiate financing and add-on products they tried to sell.
No, I was not given any credit for the taxes I already had assessed/paid on the vehicle.
Not cool… the many limiting factors made for a very controlled and negative customer experience overall.
Some states will offer a tax rebate for taxes paid to a previous state if you re-register the vehicle within the new state within a certain time frame. Did you re-register your vehicle in FL when you moved there? If so, did they collect tax on the value at that time?
If you did not re-register your car in Fl when you moved, FL may impose a penalty when you try to buy out your car. Florida taxes each lease payment. When you moved to FL, you should have started paying tax to FL on lease payment.
check with a dealer or someone who has done lease buyouts in Florida - would be weird if FL didn’t give Tax credit for taxes paid in TX but also totally possible tax scenario
question also comes how long ago you moved to Florida?
The Florida Revenue says:
Florida’s 6 percent use tax applies to and is due on motor vehicles brought into this state within 6 months from the date of purchase. If the purchaser resides in a county that imposes a discretionary sales surtax, that tax will also apply. Use tax and discretionary sales surtax do not apply if a like tax equal to or greater than 6 percent has been lawfully imposed and paid to another state, territory of the United States, or District of Columbia.
Texas is 6.25% and you probably paid taxes on Cap Cost if no Tax Credits
Further more:
It is presumed that a motor veh, territory of the United States, or District of Columbia for 6 months or longer before being brought into Florida was not purchased for use in Florida. To qualify for exemption from use tax, you must provide documents to prove that the vehicle was used outside Florida for 6 months or longer.
probably did use it for more than 6 months in TX since it’s 2021 or maybe not
lastly:
Tax is calculated on the value of the vehicle at the time it is brought into Florida, not on the original purchase price.
lot of scenarios possible
will be charged for sales tax on the purchase price since the vehicle was bought into FL - idk how the state will determine this value or they’ll just tax the buyout
or
they will just give you tax credit but not sure how it will work since ownership will be transferred to you
check with local folks or a FL dealer can chime in - DMV will be the worst place to start since they don’t know anything ever anywhere
i usually start by calling the Revenue guys and just ask for help in filling out the tax form in other states
I was forced to go to a GM dealership to transact the lease buyout, I was not allowed to pay GM directly in any way.
GM will not allow the vehicle to be traded into a non-GM brand
GM will not allow a 3rd party or private-party sale
Basically, either give them back the vehicle (and my equity) or go deal with a GM dealership to essentially buy the vehicle like used.
Yes, I had to go through dealership financing as well, despite having a preapproval from my local Credit Union. The dealership refused it. Which means I had to re-negotiate financing and add-on products they tried to sell.
No, I was not given any credit for the taxes I already had assessed/paid on the vehicle.
Not cool… the many limiting factors made for a very controlled and negative customer experience overall.
