Moving to another state with my leased 2019 5 series

joelk01

I am in NJ and I am paying the tax on my lease via my monthly payments. If I register the car in another state, say Virginia, will I have to pay VA taxes? If so, will I get credit for my NJ taxes? I am sure some of the answer is state specific, but this seems like it could get messy, particularly with other states that require a tax of the full price of the car rather than just the value of the lease.

kyfdx

Actually, you aren’t paying your taxes monthly. NJ collects sales tax upfront. You rolled the tax amount into your CAP cost (essentially, you borrowed that amount). The entire amount of NJ sales tax has already been paid.

VA taxes new vehicles the same, purchase or lease, by taxing the full sales price. If you were moving to VA with a car you owned, there would be no tax due. How will they treat your leased car? I don’t know. But, I bet someone at BMWFS knows.

kyfdx

From VA DMV website:

“If you are titling your vehicle in Virginia for the first time and you hold a valid assignable title or registration issued in your name by another state or a branch of the United States Armed Forces, you will not have to pay the Motor Vehicle Sales and Use Tax. However, if you purchased the vehicle within the preceding 12 months, you must provide proof that the sales and use tax was paid elsewhere in order to be exempt in Virginia.”

kyfdx

Of course, BMWFS holds the title, and they will in VA, as well. They can also prove they paid sales tax. Hopefully, that will mean you owe nothing additional. But, it’s a lease, so who knows?