The finance manager is telling me I have to pay OR state .89% tax for out of state lease. BMW dealer is in the OR state and the car will be registered in the WA state.
From his email >>>Your lease Hacker is going to be off because it is not factoring in the .89% Oregon tax that you have to pay for buying in state. This is a no money down lease…>>>
How Total cap reduction $1982.66 and Adjusted cap cost $64,662.40 is calculated in his screen shot?
LH Calc
The first rule of LeaseHackr is: you do not talk about LeaseHackr. The second rule of LeaseHackr is: you DO NOT talk about LeaseHackr!
There is no sales tax on any vehicle purchased in Oregon.
- As of January 1, 2020, certain Oregon businesses will need to pay a new Corporate Activity Tax (CAT). Oregon vehicle dealers are allowed to pass the cost of the CAT on to consumers who purchase vehicles from them.
- If you are buying a car in another state, make sure the dealer fills out paperwork for Oregon residents so that you do not have to pay sales tax.
Edit: apparently there is a privilege tax. 
Taxes and fees magically appear when LH is mentioned 
Interestingly enough, It looks like they do charge a 0.5% state sales tax in addition to the CAT that @AutoCompanion mentioned above (see the last few lines)
Correct. Oregon has a .5 percent privilege/use tax on cars sold/leased in Oregon, or for cars bought/leased out of state that are required to titled/registered in Oregon.
https://www.oregon.gov/dor/programs/businesses/Pages/Vehicle-privilege-and-use-taxes.aspx
Follow me here because this is a bit complicated, but I’ve got lots of time today…
Because this is a no money down (Zero Drive Off) lease (per dealer email), you’ll note that the Cap Reduction here is $1,982.66 and not $3,000. The $1,017.34 difference is comprised of what would be DAS under a normal first-month only structure.
If the monthly payment is 838.90, that leaves $178.44 in other upfront costs, which happens to be exactly $1,982.66 (Cap Reduction) multiplied by 9% (your tax rate), or what’s referred to as CCR/ Cashdown Tax. This tax is usually paid upfront, and in many states is required to be listed separately on the sales contract.
Summary:
$838.90 + $178.44 = $1,017.34 (FMP + CCR Tax)
$3,000 - $1,017.34 = $1,982.66
Next we have:
We know the following information:
Because GCC-CCR=NCC, therefore GCC = $64,662.40 (NCC) + $1,982.66 (CCR) = $66,645.06
So:
Total Capped Fees are listed as $1,561.10, which is equal to the doc, acquisition, and registration fees ($150 + $925+ $486.10). However, the GCC should equal the selling price (+aftermarkets, maintenance, gap, of which there are none here) plus ALL capitalized fees and taxes
$64,500 + x = $66,645.06; x = $2,145.06.
Therefore, there are 583.96 in capitalized fees or taxes that are absent from your lease sheet, as many have mentioned from the LH calc analysis. it’s hard to say exactly whether these are additional fees or taxes, but 583.96 is conveniently just about 0.90% of the selling price.
My guess is that this 0.9% could be the 0.5% state sales tax I mentioned above plus the 0.4% Oregon Corporate Activity Tax being passed on to the consumer (you)
Hopefully all of this makes sense, and I’ve attached my spreadsheet to show how this works with all of the numbers. Hopefully that clears things up for the OP or anyone else who cares.
Just saw this…Beautiful reverse engineering :Thanks: 
Thank you again for analyzing the deal. what do you think of this $839 pm with $0 DAS? I was not aware of OR CAT and privilege tax etc. If I would have known beforehand, I would gone to CA dealers.
Per LH with DAS $0 comes to $816 pm. It might be due to LH doesn’t account for OR CAT. The difference of $828+ over the life of the lease. Doesn’t bother me much with this amount.
Got two other deal models with Inception cost (CAT, doc, DMV, 1st month) comes to DAS $2058.96 with $778.19 pm.
Another model with just the first month’s payment and rolling up everything in cap cost comes to DAS $815 with $815 pm.
I probably go with DAS $0 model. Since there is no difference virtually with all 3 models he gave me, when I calculate total lease cost over the 36 months.
Do you mind sharing your XLS sheet? Totally understand if you don’t want to because of your IP.
TY!
Realistically, what it boils down to is that if you’re not an OR resident, you shouldn’t have to pay the OR use tax. However, if you are an OR resident, the dealership may charge the use tax, but the dealership doesn’t have to charge it if the dealership is not considered to be “doing business in OR,” i.e. isn’t a registered business there/doesn’t have a physical location/doesn’t have significant contacts to establish nexus.
When in doubt, call your local tax department/department of revenue, as well as the one where a dealership is located.
Nothing herein is to be construed as tax advice. ← Sorry, but I always have to disclose that! 
No Problem. Thanks for sharing your deal sheets…they make my analysis much easier.
Considering that you’re at almost 12% off with 3k in rebates (is this an X3M?), there’s not much room (if any) left to negotiate. Structure the deal how you please, but your total lease cost will be essentially ~30K in any case, which is very good.
The best way to reduce the total lease cost at this point would be to do MSDs, which would save you just over a grand across the life of the lease.
I will send you a PM regarding the model.
Thank you, you are the best!
This deal sheet is for X5 40i. Also picking up 530i. Just FYI - 530i msrp is 63085 and monthly with $0 DAS is $593. Discount is 12.7% with $4K rebates.
Was supposed to pick up last month but my Mom passed away in Jan and I couldn’t. Will be picking up from OR this coming sunday. Will post pic but here are from the mygarage site.
