Tax Question for Out of State Lease Transfer

If I were to transfer a lease from a state where they pay monthly to VA, which charges 4.15% tax upfront on the “purchase price” of the vehicle, how would that work? I was able to find some similar questions in other states, but none transferring the lease into VA. VA also charges annual personal property tax (PPT) on the value of the vehicle which I would obviously be on the hook for. I just want to make sure I don’t get dinged 4.15% for what is essentially a used vehicle + PPT annually.

Thanks in advance for any insight!

I live in Virginia. I believe I am correct but you might want to call DMV to verify this. If you can prove you paid the sales tax to your former state, then you do not have to pay any additional sales tax in Virginia. You are correct about the personal property tax. But, some localities in Virginia pro rate and some do not. If they do not prorate, then the tax is based on what you own as of January 1.

I think he’s asking about lease transfer where he personally did not pay tax and the sales tax is not capped. I guess he will be charged taxes based on the current value? I didn’t know that some counties do not prorate property tax. That would suck even more.

1 Like

Only sucks if you own it on January 1 and you sell it soon after and have to pay a full year tax on it. It’s great if you buy it January 2, you get a free year!

1 Like

Thank you both for the responses! Adam, nice to see someone else from VA here.