Sales Tax Question

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

that is how it would work in TX (in basic terms) without tax credits…