Sales tax implications of shipping a car to Texas

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1

Hello,

Have a slightly complicated situation and would appreciate some advise.

I moved to Texas two months ago from NJ. My FIL still lives there and needs a car.
He will be moving to Texas in a few months (he doesn’t want to come during summer).

My question is, if I lease a car for him in NJ today, do I have to pay the entire 6.25% tax when we move the car OR will it get adjusted as I have already paid the NJ sales tax? Also, I know there is a possibility that I won’t have to pay the sales tax in TX as we will be moving the car with him (based on some research).

Given these scenarios, I think getting the car for him in NJ makes sense as long as I don’t have to pay the entire 6.25% when I register.

Any thoughts?
Thanks

2

If you lease a car in NJ, as a Texas resident, you’ll be paying the 6.25% Texas tax rate.

If your father in law leases a car in NJ as an NJ resident, he will pay NJ taxes, and then the $90ish transfer fee when he moves to Texas.

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3

Gotcha, thanks for your response.

4

Leases are terrible right now.

So if you take an inflated lease cost

Then pay 6.625% NJ tax on it…

Then pay inflated shipping costs…

And still retain the possibility of paying 6.25% TX tax on the selling price (or the balance after being credited what was paid to NJ)…

It just doesn’t seem worth it.

I say look for TX tax credits at a Texas dealer and apply them as a Texas resident.

5

Sorta curious how this won’t look like a ‘strawman’ to the dealer.

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