The problem is that the tax paid in Virginia was actually paid by the owner and the owner demanded that I refund it to him. So I never paid taxes directly to the state of Virginia for the car. Now Florida charges me a monthly sales tax on lease payments and since I haven`t paid any tax in Virginia, I don`t have a credit. When you rent a car, you can pay a small monthly usage tax on the rental, depending on your national or local tax rate. When you buy a car, you pay sales tax on the total price of the vehicle. Since the lease buyback is a purchase, you`ll have to pay your state`s sales tax rate on the car. As of September 2011, Oregon, Alaska, New Hampshire, Montana, and Delaware do not charge sales tax to consumers, but if you live in one of these states, you may be subject to local taxes. Before you can calculate sales tax on your lease buyback, you need to know the residual value of the car. Your lease payments are determined in part by the difference between the original value of the vehicle and its residual value. Sales tax in Virginia is levied on the TOTAL value of the car, not just depreciation, as is the case in most other states.

The rate is 4.15%, but can be higher with additional local taxes. In Fairfax County, for example, it`s 6%. This obviously sucks in and reduces value. However, I have a question: if you wish to exercise the purchase option at the end of the lease, will VAT be charged on the purchase price? Obviously, it would be double taxation and it would not make sense, but government rules do not necessarily follow common sense. The best way to calculate the amount of sales tax on your lease buyback is to look at the original rental documents, where you will find a breakdown of taxes. I haven`t rented to NoVA yet. Given that, that would be a factor. Many dealers offer cash incentives or manufacturer discounts on a vehicle`s badge price to encourage sales. For example, a $1,000 cash discount can be offered for a $10,000 car, which means the expenses for the buyer are $9,000. Does anyone know that if you take a lease in Virginia or Virginia, you pay taxes in advance or it will be added to the payment? Most states incorporate sales tax into the monthly car rental payment, although some states require that the full sales tax on all your rental payments be paid in advance.

In some states, such as Texas, tenants are required to pay sales tax on the total value of the rented car, as opposed to tax on payments during the rental period. From there, contact your state`s motor vehicle department or visit their website to find out how sales tax is calculated on cars rented in your state. This will help you know what to expect for sales tax when you buy your lease. If you prefer a more accurate picture of the amount you pay, you should contact a tax professional. Section 212.06(7), F.S., authorizes credit on motor vehicles brought into Florida if a similar tax has been lawfully levied and paid in another state, territory of the United States or the District of Columbia. The Florida Use Tax Credit and any discretionary sales tax is granted on a similar tax paid in another state, regardless of whether the tax was paid to that state or to a county or city (local taxes) in that state. If the amount paid is equal to or greater than the amount imposed by Florida, no additional tax is due. If the amount is less than the amount imposed by Florida, only the difference between the two is due. This is true as long as the original tenant has paid taxes.

The best example I can think of is that I rented a truck from NH, $24 in county taxes at the time of the lease, that was enough to waive taxes on my hypothesis. If no tax is paid, you will be charged with them. A lease buyback that usually takes place at the end of your rental period is when you choose to keep your rented car instead of returning it to the dealership. Also, keep in mind that you can drop off a rented car or buy back your rented car at any franchised dealership that carries your brand. If you feel uncomfortable working with the dealer through whom you originally rented the car, simply bring your business to another dealership. Even if you like the car, a leasing buyback may not always be the best option for you, and you may have to look for another car. If your balance payment is much higher than the current market price for the car, or if your initial rental anticipates a high buyback fee, or if you can find a better deal on a newer rental, it may be better to pass on the lease buyback. .