I was trying to search the forum for an answer but does not seem to find a direct answer as most deal with out of state registration questions. My question is, should I be taxed on the doc fee and acquisition fee if I lease from IL and register in MI? The agreement provided by the IL dealer seems to suggest I don’t pay tax on these fees. Is this correct? Or will I be taxed when I register the vehicle in Michigan? Thanks!
Doc fee is usually taxed because it’s just added to the price by the dealer, aka additional profit. The acq is usually taxed if you roll it into the deal, if it’s paid upfront, there should be no tax. Personally I always roll everything in and do first payment or $0 at signing. You’re talking about $150 either way, I’d be more concerned about the actual deal.
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Thanks for the reply. I understand normally they both should be taxed. But the IL dealer didn’t add tax to the total amount of due. I was wondering if it is because it’s an out of state deal. It’s a Nissan one pay lease BTW.
That’s normally what they do. They just charge you for the car and you deal with taxes when you register car at DMV. Out of state dealers don’t want to be guessing on taxes cause that is something that can get you in trouble if you mess up.
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