I recently leased a VW Passat in Virginia, I reside in North Carolina and the dealership is registering the car for me in NC. The dealership charged me the 3% NC Highway Use Tax (sales tax essentially) on the entire selling price of the vehicle $21,586. From my understanding I should only have been charged this tax based on the monthly lease payment (the capitalized cost). The difference works out to be over $300 over the course of the lease.
The dealership has not been forthcoming at all, they said they would look into it and have been impossible to get through to. I also attempted to clarify with VW Credit and they said it was between me and the dealer, although it seems like it should be easy for them to rectify. I’m a recent transplant from NY, so I contacted the local DMV to clarify, but they were unable to give me a straight answer.
I understand that in NC I am required to pay the yearly property tax on the vehicle as well, but am I correct that the 3% Highway Use Tax is only on the capitalized cost?
Any ideas on who to best pursue getting this corrected, VW Credit or the dealer?
Thanks for any advice!