MD Sales taxes on Lease buyouts

[gidi082]

Did a lease buyout and financed the amount through my credit union. Got the lien release letter and I am going to have to go to the DMV to get a lien added to the title

I prob know the answer to this but checking anyway lol, but I will have to pay sales tax on the the amount financed or the actual mv of my jeep?

how does MD calculate that 6%?

thanks guys

Sponsored

 

[Bogdan_P]

No, you already paid sales tax on initial lease of the Jeep.

edit: MD charges 6% tax the total sales price at purchase/lease. So if you lease your Jeep and the vehicle price is $50,000 that's what you pay tax on, even if your residual value is $35,000. Your tax is at inception in MD.

Hope this helps.

 

[gidi082]

Helpful, thank you. Yea went to the MVA and did not have to pay any additional taxes

 

[Fourthandlong5]

weird...I just did the same...buyout of the lease via Credit Union and the CU claimed I'll owe PA sales tax on the residual purchase price.

 

[Bogdan_P]

weird...I just did the same...buyout of the lease via Credit Union and the CU claimed I'll owe PA sales tax on the residual purchase price.

PA might calculate tax differently, so that way you don't have to pay tax on the sales price up front.

Sponsored