Hey Folks,
I am getting different answers from everyone and was wondering if someone could help me to confirm the sales tax rate for a lease in Alb, NM?
Is it a straight tax with state only? Or, county? Luxury?
Let’s assume a $68K car in Alb.
Thanks in advance!
Mike
Haha yes, I have resources. I have a little bit to do at work, but I should be able to get all the info in about an hour.
Thank you!!
The best info I have so far is 5.125%
Why not call the Secretary of States office and then you can be a resource for this discussion?
I’m definitely not an expert but someone I work with who lived in New Mexico said it was 3% excise tax on the price paid for the car. He mentioned that there was some rumblings that this would increase to 4%, but wasn’t sure if that happened or not.
Thank you so much. I am referring to sales tax!
Local car taxes can be tough to figure out. For work I needed to know local annual car tax rates in Missouri. In Virginia every county puts the rates online but for Missouri seems to be operating in the stone age. Ended up spending hours calling different towns and counties. A year later my rage against the State of Missouri is only just subsiding.
He said that MVET = Sales Tax
That is inaccurate for sure
Doh 
, sorry for the confusion!
Haha that’s ok!
I appreciate the effort.
Sorry, got totally tied up talking to someone. Posting this and already researched it. Will write that up now.
NM is NOT clear on things at all. First of all, NM considers a “lease” to be a rental of 6 months or less, so “lease” is not considered such there, at least in the traditional sense.
While the sales tax rate is 5.125%, NM imposes both a gross receipts tax and an excise tax on vehicles, but you don’t pay both. Generally, it is the excise tax that is paid. Through June 30, 2019, the rate was 3%. Beginning last week on July 1, the rate increased to 4%. The rate is imposed on the “purchase price of the vehicle.” This is where NM gets messy, because there is nothing distinguishing a traditional lease from an outright purchase. The only term that defines anything is that it is imposed on the purchase price of a vehicle, which means that, for a lease, you’re paying on the cost of the depreciation, i.e. a car that has a selling price of $30,000 and a $14,000 residual would be taxed on $16,000. Also, rebates and incentives are included in the amount on which you pay tax, so this is calculated based on the selling price before rebates and/or incentives.
NM does say that every time a vehicle is titled, it considers it as a sale occurring, and the tax is due. The state does not provide any other guidance or anything that is clear whatsoever. It definitely is not imposed on the monthly price, and the preferential rate below that of the sales tax rate compensates for the fact that you might be paying on “more” of the lease than you would if you paid on the monthly.
#taxanimal
Lease tax is 5.125%. If you are purchasing it is 3.5%. Does this mean you do business in NM?
Also you only pay tax on the leased part and not full price.
Thank you!
I ship cars to any state but CA
Great! I will reach out next month when I will be in market for a XC60 or something similar.
Sorry the purchase sales tax on cars have gone up to 4% from July 1st onwards.
