Hi all - Arizona resident looking to lease from a dealer in CA (most likely BMW). I’m wondering how sales tax works for out of state residents. I know CA is pretty strict on collecting sales taxes. Would I pay CA sales tax based on where the dealer is located or would pay the rate where I live in AZ? In AZ, for leases that are 24 month or longer, the city where the dealer is located collects the sales tax using their rate, not the rate where you live. I’m sure someone here fro out of state has leased from a CA dealer, so just wondering how it works. Thanks in advance!
General sales tax in my city is 8.25% (including state and county as well). I guess my question has more to do with how AZ taxes lease payments. Most states tax based on the leaseholder’s address. AZ taxes leases longer than 24 months using the rate of the location of the dealer. But with an out of state dealer is it then my home address?
Also, I know CA collects sales tax on car purchases regardless of if you’re a resident or not, The only way to avoid it is to have the car trucked across state lines. I’m assuming that’s not the case for leases? The nuances of CA and AZ taxation and how they relate to leases is what I’m trying to figure out. I guess I could always reach out to a CA dealer, but I was hoping someone here might know ahead of time.
One way trip permit. No tax collected. Or ship it
Source ? Doubt it…
First point under “special provisions”. This is done at the city level, but since ever city around here has the same provisions and the state and county tax leases of tangible property at the retail sales tax rate, the effect is the same.
I have leased a few cars out of state including a BMW. The dealer will do the paperwork for your zip code and tax rate of where you live. One of the BMW’s I did was for 36 months and didn’t see anything different in reference to being over 24 months.
Thank you! I kind of assumed that’s how it would work, but didn’t know for sure.