I have a Mazda lease that I’m going to buyout. Car is worth more than residual value so definitely worth it. I bought the car in NY but now I live in Texas. I was advised by Mazda representative that I may have to pay sales tax when I get the title (from NY) and transfer to Texas. I know I was paying sales tax on the cost of the lease on the monthly payments. But I’m not sure if this is true or not. Does anyone have experience with lease buyout and transfer of title to a different state then the purchase state?
This is correct
You will also need to prove to TX that you paid in NY or they will double dip you.
The Tax you are paying now is on the payments which is not part of the buyout on a lease.
Sounds right to me
So what will be the amount that I’ll be taxed on? The lease buyout amount is about 30k. I have the original lease agreement so guess that portion is not going to be taxed?
Whatever your buyout is.
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