Since I am located in Philadelphia, PA, the sales tax here should be 8% (6% for PA plus additional 2% for city of Philadelphia). Right now, I am looking to lease a 2018 Infiniti Q50 and I got a sales agent from Delaware saying I need to pay 11% use tax.
Based on my research, I think I do need to pay an use tax because I am buying stuff from Delaware that has 0 sales tax. However, I think I still just need to pay 8% and not 11% like what he is saying.
“Motor Vehicle Lease Tax
The Motor Vehicle Lease Tax is imposed at a rate of 3 percent of the total lease price and applies to leases for the use of motor vehicles for a period of 30 days or more. The lease tax is in addition to the 6 percent sales tax, which is also imposed. If the lease is exempt from sales and use tax, it is also exempt from the 3% lease tax.”
I’m in Pittsburgh…we have the extra 1%, so my tax burden is 7%. Add the additional 3% and I pay 10% on my lease payment. You’ll pay 11% since you’re in Philly
Oh…So I still need to pay 11% (8% plus 3% use tax) even if I am buying the car in Philly? I thought the use tax only applies when you purchase the car from out of state.
If it’s like New York, then every municipality can charge their own additional tax. Our State tax is only 4%, but then regardless where you move to, you can get up to additional 4.85% from municipality.
That’s kinda how PA works, but it only affects Pittsburgh and Philly.
Every county but Allegheny (Pittsburgh) and Philadelphia (Philly) gets hit with 6% + 3% for the lease. Pittsburgh is 7% + 3, and Philly is 8% + 3.
In other words, if I live in a county outside of Allegheny or Philadelphia, I’d pay 9% on my lease payment. If I should move to Allegheny (Pittsburgh) county, they’d add another 1%. If I move anywhere but these 2 counties, I’d continue to pay the 9%.
It’s been that way for years. I forget, at this point, where the extra tax $$$ goes to. As the saying goes, you can’t fight city hall. In Ohio, each county pays a different tax.
Question about a lease transfer/assumption. If I buy an electric car in NJ and pay 0 sales tax and then transfer the lease to my brother in PA, does he just pay the 3% PTA tax or would he pay the 6%+3%?
To further complicate things, if I do a 1 pay and there aren’t monthly payments, will PA assess the sales tax and/or PTA on the single payment?
I did read that PA recognizes sales tax paid from another state, so I’m guessing it will be just the 3% PTA.
I plan on leasing the i3 and riding it for a year and transferring it to my brother who has his current lease due in 11 months in case you were wondering haha
delaware is 4.25 on purchase price plus 2.01 usage tax, not sure how much of a percentage on purchase price is in pennyslvania but if it’s 6 on purchase price plus 3% usage that’s rough.
