I was told to pay ny lease sales tax upfront. I believe the reason was if you roll it into the payment the sales tax gets taxed again. Can anyone confirm?
i don’t believe that is correct… you pay interest/the MF on the sales taxes and that interest is subject to tax, but they don’t tax tax. There is an example on page 16-17.
Find @AP919’s post on NY taxes. She knows her stuff and can go on forever
That one was long only because it had necessary details!
Yes and no, @Lax854. Either way, pay a few dollars more in finance charges/tax, or risk being completely out of $1,100 - $2,200, depending on the cost of the lease/depreciation. The post that @ursus referenced clearly explains how NY doesn’t care if you only had the car for a week or a month. You’re out that money if it is stolen/totalled/the lease terminates early.
Thanks ap. Reason I asked is the edmunds admins said to pay tax upfront in ny for leases. I know they are well informed but wasn’t quite sure if the reasoning behind it
It technically is true, and the two publications from NY and the statutes say it, but you don’t have to be the one who pays it, meaning the financing company is the one who pays it, and that’s why you pay interest for it. Again, sure it costs more and it’s more than you would pay in states that make things simple and uncomplicated by just taxing the monthly payment, but rolling it in equals less DAS and less risk.
Thank you very much ap. Screwed on taxes and screwed on msds. I can’t wait to leave ny!!!
Find a car that has a low MF and then roll in the tax.
Regarding MSD some brands will allow you to use them if you purchase car from out of state.
The risk is minimal in the grand scheme of things… IDK why people keep repeating this one relatively minute risk while ignoring all others
Still not a risk I’m willing to take. I can’t afford to continually plunk down nearly $2,000, in case something happens. Also, if you do something like a pull-ahead, you’re out that money too.
You can go to NJ, @Lax854, and do MSDs, but doc fees are higher, and depending on the car, you have to pay luxury tax, too.
Go to PA…doc is capped under 150.
Just couldn’t resist.
Another important thing to note is NY tax is also lost if the car is transferred out of state, either by you or someone you transfer it to, no matter how it was paid. In that scenario, you would pay tax on tax if it was rolled into the monthly payment. Very frustrated as I can’t even look at cars in NY on SAL as I would be paying a 9% premium.
Actually, that’s not exactly true. Let me get on my personal computer, so that I’m not hanging out of LH at work (!), and I’ll explain.
Come to the holy land of New Jersey. Lower taxes, MSDs, and you don’t have to pump your own gas. Winning
NJ is boring as f… My office moved from Park Ave in NYC to NJ for a shit ton of incentives. Man there is nothing to do here – nothing to look at …
wow! would love to hear this! I interpreted that NYS tax document as no refund would be given in that scenario. I know NJ allows you to apply for a tax refund if the car is wrecked or moved out of state, but never personally did it.
Or you can live in NY and work in NJ, like I do. I can honestly say that in the 2.5 years I’ve had my S60, I have never put gas into it myself!
Obscene property taxes, over-regulation, insane cost of living, state government run by Big Pharma, armpit of America