Lease Price increase due to tax rate change

Off-Ramp
#1

Hi All,

So I was looking at my Mazda CX-9 statement this month and I saw that the cost of the lease increased. I was dumbfounded by this and called Mazda to see why. They said that due to tax rate increases the cost of the lease increased. In my case Jacksonville Tax rate went from 7% to 7.5%. Its not a huge increase but I just signed the lease 2 months ago and its already increased.

Are they allowed to do this? I leased the car in Nov when it was the lower tax rate, technically they had the sale price and the taxes already calculated for that period in time. Any guidance on if they can increase the cost of the lease to me?

#2

Tax is always on the base monthly payment and collect for the state. So if your city or county just happened to raise taxes it is unfortunately but you do have to pay more.

4 Likes
#3

Not leasing companies fault.

Blame your local legislators.

6 Likes
#4

Another way to look at this, is if you moved (registered) to another location with higher/lower taxes. Your rate will change accordingly. Unless you’re in one of the states that charges everything upfront

What he said :point_up_2: it’s a pass through

4 Likes
#5

Perfectly legal bud…

1 Like
#6

Appreciate the responses guys. Just wanted to clarify and make sure everything was Kosher.

#7

I actually find this a bit odd, unless they view every payment as a taxable sale. Here in NY (which is 1000x worse than FL for taxes) I’d imagine this couldn’t happen because full sales tax is collected at the time of sale, and then that amount loaned to you over the course of the lease if you don’t pay it upfront. I guess in FL they just tax each monthly payment. That being said, our taxes are much higher and I’m sure they are only going to get higher (as more and more folks flock from NY to FL).

#8

Similarly, if you move to a county with a different sales tax, your payment will change.

#9

Yep, your comrades are driving up our real estates prices here in South Florida, not good for us locals with not as deep pockets. SFL is already severely over valued and their migration impacts that further. We haven’t had a hurricane in ages so everything looks rosy, most of the NE folks will run back once they experience a hurricane lol.

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#10

Yes, this happens in PA, if you move from any other county to Philly or Allegheny, your payments will go up as PA pays on monthly bill rather than total cost upfront like NY/NJ.