I had a question regarding lease takeover. I am currently an NJ resident and am planning to take over someone’s car lease. I also have a plan to move to Texas in a month or two. How does the tax situation work? According to my understanding, in NJ you get taxed on the lease amount, so you get taxed on your monthly payments, but TX taxes you for the whole value of the car ~90k. So that would be a significant difference. Can you all help me understand what would be the legal taxing situation for me?
If memory serves, when you move to TX with a pre-existing lease, you’re only on the hook for a $95 fee. So definitely want to get it down before you move there.
Difference is even larger for EVs since NJ exempts them from sales tax.
You should probably get it done ASAP. There was some vague speculation in another thread that you need to be a bonafide new resident. You don’t want to show up with a car that was registered in NJ the day before.
This answer here sounds correct. You basically need to pay a ‘first time resident’ charge for transferring your car registration. I’m not sure if this can be stacked for multiple vehicles though. It’s a nice loophole for getting expensive cars into the state cheap.
