Hi all, I’m kinda getting the runaround from Ford so I’m hoping for some help here. I’m looking to take over a Ford lease from someone in NJ where they paid the tax upfront. In PA, we have a 6% sales tax and a 3% lease tax on the monthly payment for a total of 9%.
I keep getting different answers when I talk to Ford - they either tell me they don’t know how the tax will change and I have to talk to my local tax office (who I know will tell me the finance company has to figure that out) or they say NJ and PA have reciprocity and there will be a tax credit for taxes already paid, but they can’t seem to elaborate on how that tax credit is applied.
This seems very odd, as my recent BMW lease transfer was very easy, one call to BMWFS and they could tell me what the tax changes were going from PA to NY before initiating a lease transfer.
What about a credit for taxes already paid to NJ that Ford didn’t really explain well? My thought process is, they collected tax for 3 years on a car that won’t be in NJ for 3 years, so they have to do something about that, right?
So you’re saying if they’re paying $500 in NJ, when I transfer to PA, it’s going to immediately go to $545?
22. If the lease agreement is cancelled before the expiration of the term, is the lessee entitled to a refund of any portion of the Sales Tax paid? Yes. For a long-term lease, for which the dealership collected and remitted Sales Tax at the inception of the lease (based on the entire lease amount), the lessee may seek a refund for the Sales Tax paid for the remaining portion of the lease. The lessee may seek a refund from the dealership or from the Division of Taxation. The lessee may request a refund from theDivision of Taxation by filing a Claim for Refund (Form A-3730). The claim and all supporting documents must be filed within four years of payment of the tax.
Yes…If the contract shows the base payment including all the rolled in tax (ie the sales tax line for the payment is N/A) the new state will add the local sales tax rate on top of the base payment even if it had taxes included in it.
According to posters here, they don’t actually refund anything. It’s either summarily denied or replied like 6 months later with a nonsensical request for ‘proof of payment to the DMV’ after showing the lease contract and reg receipts.
Spoke with someone at Ford Credit that handles the tax stuff, they said they can’t calculate the tax exactly until the car is registered with PA, which means I’d have to go through the lease assumption process blind in that aspect. But she also said that they apply the NJ sales tax that was already collected @ 6.625% as a prorated amount based on months remaining to PA (they didn’t specify if they pay PA directly, if they prorate the tax amount off the current monthly payment and PA charges me 9% or something) but she said that I’d only be on the hook for the 3% PA lease tax on top of the monthly payment.
This is a super frustrating situation where it seems I have to play tax roulette with Ford and PA. It’s not an issue with affordability, I just want to be sure because if I have to pay the full 9% on the current monthly payment, the deal isn’t as good and it’s close to just buying a new one locally.
