I am in the process of moving from MA to NJ shortly, and had some questions on sales tax on leases in my case.
Right now I have a lease on an X1 in Massachusetts. I called BMWFS for the process and they are sending a move packet to my new NJ address. They also said that my monthly payment is going up slightly for the NJ tax (MA is 6.25%, NJ is 6.625%). Now from what I have read and seen from others who have moved their leases to NJ, they said they paid the tax upfront but their monthly payment went down, which contradicts what BMWFS said.
Does anyone have any experience with this and how the sales tax would be handled? Is it monthly like they say or do I have to pay it upfront at the NJ DMV when registering the car?
NJ is a tax up front state. So you can pay it at once OR roll it into the payments. You can’t register the car yourself because you don’t own it. I imagine BMWFS is going to ask for the new registration and titling costs. But they will be doing the work. The only time I ever leased and had to register it myself, the dealer had to send me a limited power of attorney to register it in the name of the bank.
You can’t roll it in unless it’s point of sale, it’s technically an upfront only state, you’re only able to roll it because dealers pay it for you and capitalize that cost into the lease. In this scenario, OP would owe tax upfront on the remaining payments at the NJ tax rate.
I wouldn’t worry about it or worry about being double taxed if that’s your concern. You’ll either pay through BMWFS or pay the state directly. It will be one or the other.
Thanks everyone, I figured that the sales tax would be upfront, just trying to plan ahead if I need to pay it at the DMV or not, or if BMWFS is right that it would be monthly. Not too worried about being double taxed it’s more that I’d prefer to pay upfront as my job helps pay for that as part of the moving cost, but they won’t do it on a monthly basis, only one time payments
