My Son is moving from Pennsylvania to Texas. Should he lease in Pennsylvania prior to moving? Will this avoid the Texas tax on the entire MSRP of the vehicle?
Thanks for any info, tips or opinions!
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As soon as he informs the leasing company of the new address, it will trigger Texas taxes. Only way to avoid is to keep the PA address and registration.
Here’s this specific question answered on the TX state site, http://www.window.state.tx.us/taxinf.../faqmoveh.html
Do I owe tax if I bring a leased motor vehicle into Texas from another state?
When a vehicle is leased in another state and the lessee brings it to Texas for public highway use, the lessee (as the operator) owes motor vehicle use tax based on the price the lessor paid for the vehicle. The standard tax rate is 6 1/4%. Credit will be given for any tax the lessor or the lessee paid to another state. See motor vehicle sales tax rule 3.70 for additional information.
Well that really sucks. I was hoping to only pay the 90 dollar transfer tax.
Wait! The PA tax on a car is 6%. Texas is 6.25%. You only have to pay the .25% difference, not the whole thing.
PA taxes the value on the monthly payment, TX collects taxes on the entire sales price of the vehicle.
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Leaving it with PA plates for reminder of the lease is preferable.
Its not worth the taxes, since we pay crazy $$$ for tolls