One-pay lease and moving states - taxes

Hey guys, tried to search for some information on something like this, but couldn’t find much. I did find that if you move states, your tax rate obviously changes and your payment changes by whatever the difference in tax is, which makes sense.

Let’s say you do a one-pay lease and then move states. What happens with the taxes in that situation? Should you be refunded on a pro-rated basis from the first state and then pay taxes on a pro-rated amount to the second state?

States do not refund taxes as far as I know. You may get a credit for the taxes already paid, but it depends if the states have a reciprocity agreement.

For a better answer contact the financial institution that will be carrying the lease contract. They should instruct you in the best course of action. Because one pay or monies is suppose to be giving to the financial institution who purchased the car (not the dealership) they will be better suited to help with taxation. They in tern will direct the dealership or who ever is doing the lease contract (paperwork) on how to best fill it out to reflect your taxes, license, registration etc.
I have helped people purchase cars out of state (no lease) and the bank who financed the car have helped.

My situation is I may look into a one pay lease in Ohio, and then perhaps move before the lease is over (have a new job that allows me to live anywhere in the US). So I would pay all taxes to Ohio upfront, and then let’s say I move to another state… do I have to pay that state additional taxes?

If you already leased the car and did the one pay then the only fees you would be responsible is when you re-registered the car in the other state (based on their DMV policies) only when the tags are expired or what the state requires. The tax or fees would be based on the car’s market value. However, I would contact the financial institution who owns your lease contract and discuss with them. They may help determine the taxes you pay might be based on one-pay and not on the car’s purchase price. Also, check with your company (HR or finance) on relocation reimbursements (including cars taxes).

Generally somebody relocating does not pay taxes on a vehicle they previously owned.

Depends on the current state, destination state and the time you had the car before moving.

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I’m in the same boat, do you have any updates on this , OP? Thanks