I am interested in assuming a lease of a car and very few appear on lease swapping websites from my home state of Arkansas. Most nearby are from Texas. I am concerned about sales tax. Arkansas considers the lessor the owner and if they titled the vehicle and paid Texas sales tax or other states they do not pay tax a second time. The lessee does not pay sales tax at registration. I understand that I may have to reimburse the lessor personal property tax (around $100 per year on a $20,000 car). I am concerned about what sales tax will be imposed on me and what to look out for. I assume the lessor will have an amount in the monthly payment for sales tax, but will I just keep paying that or if they unexpectedly must pay Arkansas sales tax will they back bill me for that. What questions need to be asked to the local tax authority and lessor about taxes and are there certain states to watch out for assumption of leases from (for example Montana, Oregon, and Alaska don’t have sales tax so it will have to be paid in Arkansas)? What other non tax concerns are there regarding assumption of out of state leases?
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