Tax Credit Question with a Trade on a New Lease in Ohio

Ask the Hackrs
1

Hi All,

I just traded in my old car for a Hellcat lease. It looks like OH is one of the states that requires the tax payment upfront on a lease. Given my trade in was around 30k and at a 7.5% sales tax rate it would have saved me $2,250 in taxes if I were to buy a new vehicle. With the lease I was charged close to $1200 upfront taxes and dealer told me that my trade in did not offset that. I talked to every single “finance” person they have and even sent them a copy of the state tax code but did not have any luck. Given how good the deal is I gave up… I would really appreciate if someone could educate me on the issue.

Thanks in advance!

2

Hopefully this chart helps.
http://www.tax.ohio.gov/sales_and_use/Vehicle_Taxability_Compliance/VehicleTaxability/tabid/6311/Default.aspx?QuestionID=2678&AFMID=13652

3

I also sent this to the dealership… All they do is just plug their numbers into their software and tell you that is what you owe lol…

4

My experience in Indiana is that the salespeople aren’t very knowledgeable on those issues. I’d ask to talk to the finance manager. I believe that Indiana and Ohio have similar policies regarding vehicle trade-ins. Namely, if you trade in something whether it be a car, boat, or plane on a “like vehicle” you can deduct the trade-in value from the price of the new vehicle for tax calculations.