There shouldn’t be any implications. You leased it pursuant to the laws of the state in which you currently reside. Just because you move out of state, you do not trigger a re-jiggering of the tax.
Rather than trust anonymous posters, look for it on Texas Gov website
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 6.25 percent. Credit will be given for any tax the lessor or the lessee paid to another state.
I’m not one to argue with the TX gov website, if that’s what it says, it must be so. I’m pretty surprised. I have some friends who will be more surprised. LOL.
My understanding based on some cousins who recently moved to TX is that they won’t charge you additional tax if you’re already paying it on the lease and have held the car for a period of time before moving. They weren’t charged anything beyond what they were currently paying when they went to register the car. Of course, this was several years ago and it’s hard to argue with a pretty clear-cut answer from the State.
I have seen this and this seems very ambiguous.
Since the vehicle is not new as it is entering TX, should I owe taxes based on as new prices or on the blue/black book value as now.
Also, even if the tax rate is assumed as same, being hackers, the tax paid in original state for say 6 months at a 1% perlease would be 6% of vehicle MSRP @ 6.25 (assuming this is rate of origin state). Now TX will charge 100% of vehicle MSRP @ 6.25. So the credit is going to be peanuts.
For a $50,000 vehicle, in origin state for 6 months, I would have paid $200 as taxes.
For this 6 month old vehicle, TX will want me to pay $3,000 as taxes. Dosen’t seem justifiable.
Wonder if someone has moved in the past year or so and could provide a personal anecdote.
e) Motor vehicle use tax is due on a motor vehicle purchased outside of the State of Texas and leased and brought into the state for use upon the highway. The lessee of the motor vehicle is liable for such tax. If the lessee is a resident of this state or is domiciled or doing business in this state the tax is based upon the consideration paid outside the state by the purchaser of the motor vehicle, regardless of any use or depreciation of the vehicle subsequent to its purchase and prior to its use in this state. If the lessee is a new resident of this state as described in §3.71 of this title (relating to Definition of “Resident” and “New Resident”), the new resident may pay a new resident use tax of $90 imposed by Tax Code, §152.023, in lieu of the 6.25% use tax.
This is straight from the Texas Administrative Code.
You don’t pay tax on the whole car, it’s a $90 tax.
What @vhooloo posted is if you lease the car out of state and bring it into Texas, while already a resident of Texas.
Also from the Texas Government website:
New residents – $90 new resident fee due in lieu of use tax on a vehicle brought into Texas by a new resident, if the vehicle was previously registered in the new resident’s name in another state or foreign country.
There is one more thing to consider in Texas. Municipalities are authorized to assess property tax on personal use leased vehicles. There are eight of these municipalities in Dallas county alone and probably a lot more in the Metroplex. Here is the list for just Dallas county, I just moved to Frisco in Collin County and they DO assess the tax as well.
what would happen if you drive the car in Tx but keep it registered (with family etc) wherever you’re from? I see residents on FL with out of state tags here in FL all the time.
Technically it’s tax fraud. Also insurance fraud if you don’t tell insurance you moved. That said, there is pretty much never any reprocussions for doing so. Just make sure the address on file is somewhere you can get mail.
In NOVA where there is an annual car tax a large number of cars retain out of state plates.
This - so much this. My sister was a doctoral student in california, but had her car with her (in my Dad’s name) registered and insured in PA. She totaled it on I-5 after a car in front of her jammed their brakes unexpectedly.
The insurance company ultimately paid it, but basically told my parents that another claim from that far away would be denied.
Just want to confirm that if you move to Texas with a leased car, there is a single $90 fee in lieu of sales tax. So if you are thinking of leasing, do it before you move and you can save a a few thousand dollars.
