WHAT ABOUT THE SALES TAX
AND ALL THOSE EXTRA FEES ?
SALES TAX OR USE TAX
ON A LEASE HAS BEEN VERY
DIFFERENT FROM STATE TO STATE.
EACH STATE LEGISLATED A
DIFFERENT LAWS TO COMPUTE
USE TAX ON A LEASE.
UNFORTUNATELY,
LAWMAKERS MADE LAWS THAT
TAXED A LEASE DIFFERENT IN
ALMOST EVERY STATE IN THE USA.
THE FEDERAL GOVERNMENT
PROPOSED A STANDARDIZE USE TAX CALCULATION FOR ALL 50 STATES.
AS OF THIS WRITING, 40 STATES
HAVE NOW ADOPTED THIS METHOD.
THIS NEW METHOD TAXES
THE MONTHLY PAYMENT INCLUDING
THE INTEREST IN THE PAYMENT.
PLUS
IT TAXES ANY DOWN PAYMENT
MONEY, FACTORY REBATES,
BANK AQUISTION FEE
AND DEALERSHIP
DOCUMENTARY FEES.
THIS NEW METHOD IS FAR BETTER
THAN WHAT MANY STATES WERE
TAXING AND A SLIGHTLY WORSE
METHOD FOR SOME OTHER STATES.
OVERALL, IT IS A VERY GOOD
CHANGE FOR THE BETTER.
ALL THOSE EXTRA FEES ?
THE EXTRA FEES ARE SIMPLY
NORMAL LEASE INCEPTION COSTS.
ALL LEASES REQUIRE:
- FIRST MONTHS LEASE PAYMENT IN ADVANCE
- REFUNDABLE SECURITY DEPOSIT
- BANK FEE OR ACQUISITION FEE
- SALES TAX (USE TAX) IF PAID UPFRONT AND NOT PUT INTO THE MONTHLY LEASE PAYMENT.
- MOTOR VEHICLE FEES
- ANY OTHER STATE FEES REQUIRED BY THE STATE SUCH AS TIRE FEE OR BATTERY FEE.
- DEALERSHIP DOCUMENTARY FEE
(SEE: DEALER DOC FEE)
