Attention Virginia E90 Owners.

Marven · 02-23-2006, 07:36 PM

Hey All,
As some of you may know I am fairly new to the US and VA. Just one question..when I am leasing my vehicle I am paying tax 3.1% when I pick up the car and then I am paying a yearly property tax. What I am wondering is if I buy the vehicle out at the end of lease am I paying full tax again??? I have heard that this may or may not have been changed?? if not it doesnt seem fair that you pay the state tax 2x's... :mad:

Can anyone clarify for me please?

Thx
M.

sdorn · 02-23-2006, 07:41 PM

You are probably paying sales tax based on the lease payments you are making while under lease. Then at the time you decide to buy the car at the end of the lease, you have to pay sales tax on that purchase. You aren't really paying the same tax twice. You are paying tax on the lease portion of the car while on lease, and then tax on the purchase when you buy it. The tax when you buy it at the end of the lease is based on the residual price, not the full MSRP of the car.

Marven · 02-23-2006, 07:45 PM

Thx for replying SDORN..
I guess I should have stated that the final price of the care was $42370 and 3.1% sales tax is $1313. That's part of the downpayment they asked me to bring in so I am paying the tax on the full amount..

SteveMD · 02-23-2006, 08:01 PM

Virginia also has a 3.5% personal property tax according to leasecompare. And it applies to leased vehicles and is assessed in July.

But yes, you pay tax on the full negotiated price of the car.

Marven · 02-23-2006, 08:07 PM

Quote:

Originally Posted by SteveMD

I would find out if that is correct. Texas, Illinois and Maryland charge full tax. I was not aware that VA did. Any leasees or dealers in VA here that can set us straight?

Sorry guys once again...I am buying the car from MD but live in VA..

sorry I'm new to this whole "state" thing...I'm used to PROVINCES in CANADA...

M.

SteveMD · 02-23-2006, 08:13 PM

Marven. I edited my post above.

02-23-2006, 07:36 PM	#1
Marven First Lieutenant 37 Rep 349 Posts Drives: 2006 E90 Sedan Join Date: Feb 2006 Location: TeeDot! iTrader: (0) Garage List 2006 330i [0.00]	Attention Virginia E90 Owners. Hey All, As some of you may know I am fairly new to the US and VA. Just one question..when I am leasing my vehicle I am paying tax 3.1% when I pick up the car and then I am paying a yearly property tax. What I am wondering is if I buy the vehicle out at the end of lease am I paying full tax again??? I have heard that this may or may not have been changed?? if not it doesnt seem fair that you pay the state tax 2x's... :mad: Can anyone clarify for me please? Thx M. __________________
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02-23-2006, 07:41 PM	#2
sdorn Lieutenant 26 Rep 491 Posts Drives: 2006 Jet Black 325i Join Date: Feb 2006 Location: Atlanta iTrader: (0)	You are probably paying sales tax based on the lease payments you are making while under lease. Then at the time you decide to buy the car at the end of the lease, you have to pay sales tax on that purchase. You aren't really paying the same tax twice. You are paying tax on the lease portion of the car while on lease, and then tax on the purchase when you buy it. The tax when you buy it at the end of the lease is based on the residual price, not the full MSRP of the car. __________________ 2008 Sparkling Graphite 535i 2009 Land Rover LR2 2003 Porsche 911 Turbo (SOLD) 2006 Jet Black 325i (SOLD) 2001 Bullitt Mustang (450rwhp - SOLD)
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02-23-2006, 07:45 PM	#3
Marven First Lieutenant 37 Rep 349 Posts Drives: 2006 E90 Sedan Join Date: Feb 2006 Location: TeeDot! iTrader: (0) Garage List 2006 330i [0.00]	Thx for replying SDORN.. I guess I should have stated that the final price of the care was $42370 and 3.1% sales tax is $1313. That's part of the downpayment they asked me to bring in so I am paying the tax on the full amount.. __________________
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02-23-2006, 08:01 PM	#4
SteveMD Colonel 198 Rep 2,485 Posts Drives: 2016 F10 535i MSport Join Date: Dec 2005 Location: Raventown! iTrader: (3)	Virginia also has a 3.5% personal property tax according to leasecompare. And it applies to leased vehicles and is assessed in July. But yes, you pay tax on the full negotiated price of the car. __________________ 2006 E90 330i (retired) 2009 E90 335i (retired) 2012 E70 X5 50i M Sport (retired) 2016 F10 535i M Sport
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02-23-2006, 08:13 PM	#6
SteveMD Colonel 198 Rep 2,485 Posts Drives: 2016 F10 535i MSport Join Date: Dec 2005 Location: Raventown! iTrader: (3)	Marven. I edited my post above. __________________ 2006 E90 330i (retired) 2009 E90 335i (retired) 2012 E70 X5 50i M Sport (retired) 2016 F10 535i M Sport
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