Quick question, I have leased 4 vehicles in the state of Kansas, I have 4 examples of how tax is paid on a lease. Every one I have done so far has the following:
Gross Cap Cost -
Cap cost reduction
=Adjusted cap cost
Less residual value -
=depreciation & any amortized amount
+rent charge
= base scheduled payment
- sales/use tax
= total scheduled payment
I realize that’s elementary and how every lease I have done works, however I have a dealership trying to tell me I am going to have to pay $3400 in tax on a lease for a vehicle lease with an adjusted cap cost of $34,000.
To me it appears they are taxing the entire cap cost, not th individual base payments for the lease