Sorry, I just saw this. Generally, you do have to pay the sales tax when assuming the lease. It’s partially because “sales” tax is commonly referred to as “sales and use tax” (and to make this less complicated, I will tell you that use tax is usually a separate item, but let’s not worry about that now) so you can think of it as a use tax on using the car.
From one of the publications from the state:
The following charges and fees associated with a long-term motor vehicle
lease are also subject to sales tax. However, the tax is due at the time the
charge or fee is actually paid by the lessee:
• excess mileage or use charges;
• excess wear charges;
• damage, repair and similar charges;
• lease transfer or lease assumption fees;
• the charge to purchase the vehicle at the end of the lease term, if the
*lessee decides to purchase the vehicle; and *
• any disposition fee or any other fee if the amount of the fee is charged
at the end of the lease term.
Also:
"Any tax due after the lease and sale/assignment (for example, tax due on the lessee’s payment of a lease transfer or lease assumption fee, or excess
wear charges) must be collected and remitted by the finance company."
This is why BMW collected the tax on a lease assumption.
This is taken from a case I mentioned in another post on sales tax in NY:
When the original lease is subsequently assumed by an assignee, this is a separate
taxable transaction. As stated above, title or possession of tangible personal
property has been transferred for a consideration. In this instance, the
consideration is the assumption of the lease payments and tax is due on the
remaining payments on this lease as indicated above.
Simply put, NY courts consider the original lease and the assumption of the remaining term separate and distinct retail sales under Tax Law § 1105 (a).
I can’t find anything that says you can provide proof that the tax is already rolled into the payments, but I’m also guessing that this is partially because NY assumes the tax is paid upfront and therefore already paid in full. It sucks for the person assuming the lease, but one reason leasing companies can charge tax on the finance charge and finance charges themselves is because they encompass a “transaction,” and the finance company is lending you the money, as it has already paid the sales tax (I just got a note that the tax on my car was paid full, for instance). The opposite to this is when you lease a car in another state and you can prove the tax was already paid, and therefore, either you only pay the difference between that rate and NY’s rate, or the rate exceeds that of your jurisdiction in NY. This is also dependent on how much of the lease has elapsed prior to bringing a car here, as well as how much time is left on the lease.