Title change from CA to MD (Tesla Model 3 Lease)

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Hello,
Unsure if this is right place to ask the question. Hopefully, someone can shed some light for me as I do not quite understand the taxes involved in Maryland.

I moved to Maryland a month ago from California and took my 2021 Tesla Model 3. I am in the process of changing my title from CA to MD. I knew that when changing the title to MD, I would have to pay all the taxes upfront. However, MVA in Maryland is saying that I need to pay taxes on current value which on their system is showing $55000 for 23,000 mile driven 2021 Tesla Model 3 and not the cost I leased the for ($38,000). I do understand that if I can sell my Tesla Lease to a 3rd party dealer, I’ll pay the taxes on the $55000. But, as you all know, Model 3 can’t be sold. I am unsure why I would need to pay taxes on current value? What I am trying to saying is would there be a way to argue that the taxes should be on the cost I leased for? And wondering if anyone went through the situation and figured a way to circumvent this. Also, if I return my lease, would there be some sort of refund of the taxes?

Thank you in advance for hearing my rant.

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Maryland is definitely unique where they try to calculate the value themselves first. Otherwise, they’d go off of what you had on your lease agreement. You are also entitled to some tax credit for taxes paid to California. It sucks that Maryland charges you tax on the full selling price vs monthly.

See if you can convince them to go off your lease agreement and find out how much tax credit you’d get.

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What do you mean by the cost that you leased for ($38000)? Was the cap cost for a Tesla ever $38,000?

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Gross cap cost was about 39300 looking back at my agreement.

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Thank you. I guess I am out of luck. Will need to keep calling them if anyone goes off of the lease agreement.

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The selling price or “agreed-upon value” in your lease agreement should be the tax basis, or at least that’s probably your best argument.

Might be best to find a way to email someone rather than try to debate this in person with the average clerk.

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How much longer do you have on the lease left?

Honestly, if it’s not that long (given you have a 2021 model) I’d just keep CA tags on and drive it until you return the lease.

Why pay tax again (on the entire value of the car too) to the state of MD?

Most states you give you an interim period to drive on out of state plates.

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