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      05-08-2020, 03:39 PM   #93
Belugs
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Drives: 2018 M550i, 2012 528i
Join Date: Jun 2019
Location: TX

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Use tax is tax on the monthly payment common on leases. It's tax rate on payment. Sure better than having to pay entire tax of vehicle on lease like in some states.
Errr, isn't that what I said... perhaps you're just agreeing with me.

Agreed on the upfront alternative.
Yes agreeing with you! I was responding to other guys who was complaining about the use tax. I was saying better than some states where you pay full tax on msrp on leases.
Got it.

I think NY state has to pay everything upfront which is literally the opposite of the whole point of a lease.

Then there's Alaska—> zero tax. Almost makes me want to live there. Almost.
Don't you live in Washington State? What if you were to go down to Oregon and lease/purchase a car? Don't know how the usage tax is different there but I would think sales tax (lack of in Oregon) would make a huge difference?

I know before, folks in Hawaii used to go to Oregon to buy new cars because of no sales tax and then ship the car back here. But they changed Hawaii laws a few years ago and now you have to pay the sales tax on any new car being shipped in from out of state through a cargo shipping company. The shipping companies won't release the car down at the dock unless you pay the state sales tax. When the state first changed this requirement and folks didn't realize the change, they were getting screwed. One of my friends told me he was down at the dock to pick up a boat he had shipped through Matson here and a guy had bought a brand new MB in Cali and had it shipped here. Matson told him they wouldn't release the car to him until he paid the Hawaii sales tax and the guy was arguing with them that he already paid the Cali tax when he bought the car so shouldn't have to pay Hawaii sales tax on top of that.

The only way around this is to buy a car on the mainland and keep it up there for a month or so to get regular non-temp tags and then ship it here as at that point they no longer consider it a new car and the new law doesn't require used cars to follow the same.
You pay tax based on where you live
Auto lease taxes in Texas is practice not law. The lessor/owner (dealership) of the property is responsible for the tax, the lease contract is not subject to tax. BMW just passes the full tax to the lessee so they don't incur the costs.
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