My vehicle is registered in DC and I am trying to swap it out.
Does anybody know how the tax treatment (excluding the annual property taxes) will be for a transferee who resides in VA or MD?
According to a rep at BMW FS, after the assumption process is completed, VA resident transferee needs to pay the taxes to VA based on the remaining base payments on the lease.
My understanding is such that for a hypothetical $100 base payment (excluding DC taxes) and 30 months remaining life on the lease, the tax will be $124.5 ($100 times 30 times 4.15%).
I just want to know if this is the fact.
Thanks.
I have Xfered a BMWFS lease within NYS and had to pay tax on the outstanding payments.
When Xfering to MD the tax would be calculated on the value of the car
In Virginia when you lease you pay the full price of the car. It would seem strange to me that they would ask for the car tax on actual lease payments when they don’t do that for anyone else.
Searching the DMV website, I think this is the answer. Buyer would probably need to pay taxes on NADA stated amount. Good thing is that NADA numbers are usually lower than actual numbers. Not sure what would happen if car is less than 12 months old. Buyer may have to pay tax on sale price.
https://www.dmv.virginia.gov/vehicles/#sut.asp
This makes perfect sense. Otherwise lease transfers would be an fantastic work around the VA tax scheme that requires tax payment on full sale price of leases vehicle. As it is, lease transfers are still tax advantaged since you pay tax on a below market NADA valuation.
Thank you very much. This is really helpful.