New Jersey lease tax calculation

,

Sales tax in NJ is computed as follows…
monthly base lease payments x term x sales tax rate.

base payment = MF x (sell price + taxable fees capped in the lease - cap reductions + RV)
+ (sell price + taxable fees capped in the lease - cap reductions - RV) / Term

MF = money factor
RV = residual value

sales tax = base Payment x term x sales tax rate

3 Likes