Mini FS Asking Me to Pay Double Tax on VA Lease Buyout

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Hi Everyone,

I have a question regarding the buyout of my wife’s leased mini countryman. As some of you know, VA is an upfront tax state, meaning we paid tax on the full price of the car when signing the lease. When we called MINI FS to buy out the lease, they added VA sales tax to the buyout price.

Upon further inspection on the DMV site, I saw the following:
" Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee’s name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again. The lessee must present proof that the payment was made. Additionally, the vehicle must be either acquired directly from the lessor or from the selling dealer who leased the vehicle to the lessee initially."

Now, MINI FS called the DMV and they said they need a receipt showing the DMV that we paid them the tax. This makes no sense to me, as an in state dealer always collects the tax and pays it to the state. The only proof we had is that the tax was built in to the lease on our initial sales contract.

Does anyone have experience with this? Please let me know what to do.


Ask your dealer if they have the form they sent to the state showing that sales tax was paid. I don’t know the law in VA, but in most states require dealers have to keep records for a certain time period.

That is correct, apparently. The lease contract showing the amount of tax paid is not enough for VA.
FYI: you can avoid this by doing buyout through your original dealer.

Did your payoff statement from MINI FS include the state tax amount as a line item? I’m also in VA and am about to also do a buyout with BMW FS (same company AFAIK). But my payoff statement shows $0 for the state tax line item. The only proof I have that I paid tax is the original lease contract.

Curious to hear your outcome.

Payoff statement did not show any tax I do not believe, however they added the tax when i called.

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