Sales Tax on Lease Transfer Question MD/VA
Am looking at assuming the obligations for a lease on a Mercedes M350 in MD. I live in VA. I believe that in both states, the sales tax is computed on the entire capitalized cost of the car and it is then amortized over the period of the lease.
The current monthly payment by the lessee in MD includes the applicable sales tax for that state.
My question is as to what happens if and when I have the lease transferred to my name through MB Financing: would the payments that I make have to be recomputed to include the applicable sales tax in VA? Would I receive any credit for the MD sales tax the current lessee is paying as part of his lease payments? Given that the sales tax rate is higher in MD than in VA, would my monthly payments stay the same, go up or go down?
Any guidance would be appreciated because it will make a difference in whether the deal is worthwhile.