Trade sales tax credit for leases in NY State

I’m trading in a vehicle and leasing a new one. The financing person told me I can’t get sales tax credit on the new lease from the value of the trade. Only when financing. Is this accurate?

BSing whats the name of the stealership?
And the finance guy, pm me

It’s a BMW dealership on Long Island.

In NY any trade-in credit reduces the taxable amount of the lease… for a simple example:

Total DAS: $4,000
Trade: $3,000
Cash CCR: $1,000 (only the cash reduction is taxable)

Say the sample payment is $250 on a 24 month term:

$250 x 24: $6,000 total of payments + $1,000 cash reduction: $7,000 subject to tax at your local rate

Lots of other permutations too – further reading

Hi, does the inverse work in NY state?

I have a leased car where I paid ~$2500 NY sales tax upfront (as required by NY law). I’m thinking of trading it in early (about 18 months left on lease). This means I would’ve overpaid the sales tax - do I get any trade-in credit on the sales tax if I buy from the same dealer?


I think you have to contact the manufacturer financing company, they will direct you on what to do. I don’t think the dealership can help you with anything like that.