well here we go..originally being from new hampshire sales tax is a foreign thing to me then I moved to florida and leaed a car....payed 5% tax every month with the payment....now I'm moving to VA soon and want to lease a new S and the DMV says I need to pay sales tax on the full value of the car...what the hell is that shite? How can this be legal? I'm only using like 56% of the vehicle then returning it? Is there any way is VA i can only pay the 3% tax on the payment? Damn nazi bastands...so in theory you can pay tax multiple times on a vehicle..full value the first time...then every time the car is resold? WTF?

 

All I'll say is that VA is ED UP when it comes to calculating sales tax on automobiles. As if they don't make enough money on property tax as it is.

Yes, absolutely the case in VA. I found this out the hard way.

 

you're not a licensed reseller, so yes, every time a vehicle is bought/sold by an individual a sales tax is assessed.

the tax rate should be in the neighborhood of 3.2%, not the 4.5% rate on most purchases. many states charge their "normal" sales tax rate on vehicles.

there is also a substantial reduction in the amount of PPT you will pay, based on the roll back initiated several years ago.

 

try 9.5% over here in TN

 

Wow! It's 6.25% in Texas.

 

Tax on the whole purchase is nothing new and completely legal if they are doing a "smart buy" or balloon lease if you will. With these two options as in NY state, you pay the tax on the whole vehicle and at the end the buyout is whatever it is with no tax. Basically it has to do with liability issues and who technically owns the car.

For example...in NY...cars used to be leased in the leasing company name...someone got into an accident and didn't want to claim responsibility..got smart...called a lawyer and the court found that the driver is not responsible for the damages, b/c they don't own the car. Don't ask me how this is, but NY is up in arms and cannot lease the traditional way.

I'm not up on the leasing laws in VA or FL, but I know NJ and NY. And what you are describing sounds like the above.