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California has no respect....... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Thu, 22 May 2003 14:12:48
In Reply to: California lease tax?, Benny, Thu, 22 May 2003 11:34:06 Members do not see ads below this line. - Help Keep This Site Online - Signup |
for other states laws. In California the sales tax due on a leased vehicle is charged on the monthly payment by the month. And on any amount above and beyond normal inception fees (first, security deposit and license) that is called a cap reduction. A Saab sale lease with $3,500 in drive offs has a $2,200ish cap reduction component that is taxed at the local rate or in San Diego, $2,200 x 7.75% = $170.50 and the sale payment of $399 x 7.75% = $30.92 tax for a total of $429.92.
If you can show the California DMV or perhaps the California Franchise Tax Board, your New Jersey lease contract that shows the tax on the vehicle paid up front in the contract, you MIGHT be able to get California, or more importantly Saab Financial, to waive the monthly tax. But California might not respect that as in California you can't pay the tax up front, that's what makes it a lease and not a balloon note contract. I suspect California and New Jersey lease contracts are the same and the sales tax charged was charged on the payment. Did they not reduce your NJ payment by the amount of the sales tax and then add California sales tax?
The problem may be with the beauracracy. Saab Financial forwards the tax to the California Franchise Tax Board. The DMV simply collects and forwards any taxes due on a vehicle transaction that is completed through the local DMV. Dealers pay the sales tax directly to the tax authority. That's who you'll probably have to show your lease agreement to get any tax waived.
posted by 207.158.49...
, Thu, 22 May 2003 14:12:48 <-- Viewing This Message, Thu, 22 May 2003 17:31:25
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