MD Lease Trade-in Tax Credit

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If they were part of a big group like South Shore, I could see this happening. Pay special attention to ‘Registered in NJ’ statement.

Not sure what you mean. The OP buys in VA and registers in MD. Both NJ and MD credit trade in on sales tax calculation and VA does not. One VA dealer might have given that credit and the other one did not.

@pinkpink9232 implied the Dealer did the registration. Hence all paperwork was done by the dealer which also implies they are registered in NJ as a dealer.

No, it does not. Dealers do out of state registrations all the time.

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I was not a VA resident. I was a NJ resident and my car was to be registered in NJ. The rules of VA did not apply to me as the dealer must collect NJ tax and use the rules for NJ car sales tax for that calculation.

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Correct. The OP’s dealer did not apply the trade-in sale tax credit while they did everything else for a MD resident.

May I ask what dealership in VA did this for you?

Audi of Richmond Virginia

hmm Page auto Group but no locations in NJ, well there goes that thought.

Just generally commenting on what other people have said, but it’s just strange to me how this paperwork was filled out. I didn’t need to attest I lived in MD, since that’s where I’m licensed and where they registered me. But the Title App as shown above just straight up has incorrect math. They claimed their system doesn’t allow for lease vehicles to be used and trade in credit, but the system still calculates the correct taxable amount while still withholding the incorrect amount of tax.

Could be VA has a tax agreement with NJ (per my first post) and not with MD.

Regarding the attestation I signed- I think it could be a dealer by dealer thing. I live in DE now and NEVER buy cars here. We have purchased 2 different Audis during 2022, both in NJ. One had me sign the form that I was exempt from NJ sales tax. The other dealer did not. I was only charged DE “document tax” ( essentially a sales tax in a sales tax free state) in both cases.

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The way the manager explained it to me was they couldn’t do the credit solely because the vehicle being traded was a leased vehicle. If I owned it myself, they could do the credit. So I don’t think this is some kind of tax agreement issue. It almost seems like they missed the memo in 2018 or 2019 when MD passed the law allowing for leased vehicles to count towards a trade in credit.

UPDATE: So I went to the Maryland MVA two weeks ago to explain my case and provide documents to back it up. The MVA sided with me, took my contact info down, and told me they would reach out to me soon. Two days ago, without ever reaching back out to the dealer myself, I received a check in the mail for the amount I was overcharged in taxes from the dealership. It would appear that the MVA contacted the dealer and informed them of their mistake and told them to provide me with a refund.

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