[rbatmobilep]

Hey guys, been a long time lurker on this forum. Finally got my first BMW 335i. I need some help with a lease transfer I am doing through with BMW Finance.

I am taking over a lease from a Nevada resident and was intending to register the car in Maryland. BMW already sent me the stage 3 documents and when I went to the Maryland DMV today to get registration and tags taken care of they wanted 6% for the total value of the car, upfront!! This whole time I thought the tax would be on the monthly payments.

So my other option I am trying to figure out is to have the car registered in NJ. My question is does anyone know or have experience transferring a lease from out of state into NJ? If so, is the tax billed for the total value of the car or only on the monthly payments?

I am asking this because after going to the Maryland DMV and being told to pay upfront, I decided to not register the car yet and stop by the local BMW dealer and was told that both Maryland and New Jersey tax upfront on the total value of the car. However, when I called BMW Finance I was told that NJ will only tax on the monthly payment for the lease. Now I'm not sure who to believe. Any help would be appreciated.

I searched this forum for an answer but couldn't find an answer for out of state vehicle lease transfer into NJ.

[Kabrich]

Google is your friend and always faster than composing a long post.

http://www.njconsumeraffairs.gov/New...to-leasing.pdf

As stated in the Sales Tax section beginning on page 15, Sales Tax is collected upfront from the Dealer on the capitalized lease cost and can be paid via the monthly payments. It other words, Sales Tax is collected only on the total of the monthly payment, not on the residual.

So what BMWFS told you I s correct. NJ will only tax on the total of the monthly lease payments.

However, you did not ask the question you wanted answered to BMWFS.

You are not buying from a Dealer, thus the Nevada Dealer did not pay the Total Sales Tax upfront to state of NJ. Someone needs to pay that UPFRONT to the State of New Jersey upon Registration. Either you or BMWFS.

[tex2670]

Originally Posted by rbatmobilep

Hey guys, been a long time lurker on this forum. Finally got my first BMW 335i. I need some help with a lease transfer I am doing through with BMW Finance.

I am taking over a lease from a Nevada resident and was intending to register the car in Maryland. BMW already sent me the stage 3 documents and when I went to the Maryland DMV today to get registration and tags taken care of they wanted 6% for the total value of the car, upfront!! This whole time I thought the tax would be on the monthly payments.

So my other option I am trying to figure out is to have the car registered in NJ. My question is does anyone know or have experience transferring a lease from out of state into NJ? If so, is the tax billed for the total value of the car or only on the monthly payments?

I am asking this because after going to the Maryland DMV and being told to pay upfront, I decided to not register the car yet and stop by the local BMW dealer and was told that both Maryland and New Jersey tax upfront on the total value of the car. However, when I called BMW Finance I was told that NJ will only tax on the monthly payment for the lease. Now I'm not sure who to believe. Any help would be appreciated.

I searched this forum for an answer but couldn't find an answer for out of state vehicle lease transfer into NJ.

Kabrich is correct.

Make sure that the answer that BMW Finance is giving you is specific to transferring title to a leased vehicle. PA taxes your lease payments only, but I know someone who was transferring title of his leased vehicle from NJ to PA during the term of the lease, and he encountered something similar, so he left it titled in NJ for the rest of the lease to avoid the additional tax.

[rbatmobilep]

Thanks for your help guys! I'll check with them Monday.