Hello,
Question on lease transfer. I have a new Lexus lease that I paid the tax upfront for NY on. I (think) I understand that if I transfer this lease out of state I lose the tax paid, + the new leasee takes on tax.
But what if the lease transfer is done within NY state? Would the person receiving the lease transfer have to pay tax again? My monthly payment is w/o tax currently
Any insights appreciated!
for most states when you transfer inside of the state you only pay transfer fee’s not tax. So you should not incur a huge bill if you transfer within NY.
ok thank you for the info. I was hoping this was the case
Sorry, but this is wrong. I commented on this previously: Transfer Tax in NY.
NY treats each registration as a new, taxable event [sale], so the transferee must pay tax as well.
ah. So to be clear, I paid full tax upfront (about $2k) on the lease. If I transfer to someone in NY state (same state Im in). They will be on the hook for another $2k bill from NYS?
I guess Ill need to incentive this lease if I want to move 
I said “most states” and then “should not,” NY is an exception I guess, most states don’t charge the new lessee the sales tax that the new owner had to pay.
I don’t think it will be the the same amount, ie it will be calculated on the payment * months remaining
NY taxes as many times as is possible for them to get away with. If you transfer in state, the new owner will need to pay tax as well. If you paid your tax on pickup, you shouldn’t need an incentive in my opinion, only if the tax was included in the payment, meaning they would be paying tax on your taxed payment X months remaining, essentially meaning the new owner is literally paying the tax twice.
thanks for the insight. Good ol NY…never making a thing easy
If its any consolation the DMV tends to mess up the tax calculation at times so whoever you transfer it to may get lucky. When I transferred my lease from NJ to NY, they couldn’t calculate the months left properly.
