Euro Delivery Sales tax when leasing?

PatatasFritas · 05-09-2015, 12:54 PM

Hey guys sorry for the dumb question but when leasing a car that you picked up with ED, do you have to pay an additional tax upon pick up?
I got my car in November, and just got a tax notice that I need to pay a 6% sales tax, which I thought was included in the lease payments. I'm confused.
Thanks.

OneRib · 05-09-2015, 01:40 PM

Quote:

Originally Posted by PatatasFritas

Hey guys sorry for the dumb question but when leasing a car that you picked up with ED, do you have to pay an additional tax upon pick up?
I got my car in November, and just got a tax notice that I need to pay a 6% sales tax, which I thought was included in the lease payments. I'm confused.
Thanks.

There is no additional tax when doing ED. Someone either messed up or your state has a certain tax structure for leases. It would help if you let people know what state the car is registered in.

PatatasFritas · 05-09-2015, 01:42 PM

Quote:

Originally Posted by OneRib

There is no additional tax when doing ED. Someone either messed up or your state has a certain tax structure for leases. It would help if you let people know what state the car is registered in.

It's registered in Pennsylvania.

PolishM3 · 05-09-2015, 03:26 PM

Pennsylvania has a 9% sales tax on leases (6% state and 3% usage tax). Unless you are in Pitt or Philly and then it's 11%. Those taxes are usually capped in the lease so you'll have to look at your contract if this was done properly. Usually the dealer remits the tax to the State. If you got it from an out of state dealer they may not know the process.

OneRib · 05-09-2015, 04:07 PM

PolishM3 is correct except its 10% in Allegheny county and 11% in Philadelphia county. NO additional tax except the 9-11% built into the payment.

Double check the paperwork.

PatatasFritas · 05-09-2015, 04:28 PM

The revenue service claims a 6% sales tax even though the tax is included in the payment (although it was purchased out of state).
This is strange.

OneRib · 05-09-2015, 06:48 PM

The out of state part probably caused the issue. It sometimes happens when you buy way out of state. PA dealer wouldn't have this issue and most dealers bordering PA would be fine also (NJ,MD,OH,NY). If you buy from a dealer in say Kansas, the chance of a mistake increases. You may have to call the state revenue department and/or the dealer to straighten it out.

05-09-2015, 12:54 PM	#1
PatatasFritas Enlisted Member 21 Rep 46 Posts Drives: E92 M3 Join Date: Jul 2014 Location: USA iTrader: (0)	Euro Delivery Sales tax when leasing? Hey guys sorry for the dumb question but when leasing a car that you picked up with ED, do you have to pay an additional tax upon pick up? I got my car in November, and just got a tax notice that I need to pay a 6% sales tax, which I thought was included in the lease payments. I'm confused. Thanks.
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05-09-2015, 03:26 PM	#4
PolishM3 Private First Class 63 Rep 148 Posts Drives: M4 GTS,2018 M3CS,2023 BMW IX Join Date: Apr 2011 Location: Mechanicsburg PA iTrader: (1)	Pennsylvania has a 9% sales tax on leases (6% state and 3% usage tax). Unless you are in Pitt or Philly and then it's 11%. Those taxes are usually capped in the lease so you'll have to look at your contract if this was done properly. Usually the dealer remits the tax to the State. If you got it from an out of state dealer they may not know the process.
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05-09-2015, 04:07 PM	#5
OneRib Colonel 1107 Rep 2,448 Posts Drives: 2015 AY M3 Join Date: Mar 2013 Location: PA iTrader: (2)	PolishM3 is correct except its 10% in Allegheny county and 11% in Philadelphia county. NO additional tax except the 9-11% built into the payment. Double check the paperwork. __________________ 2013 E92 M3 LMB (gone but not forgotten) 2015 AY F80 M3 ED 7/9/15 Drop off 7/20/15 Redelivery 8/25/15 My AY M3 ED
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05-09-2015, 04:28 PM	#6
PatatasFritas Enlisted Member 21 Rep 46 Posts Drives: E92 M3 Join Date: Jul 2014 Location: USA iTrader: (0)	The revenue service claims a 6% sales tax even though the tax is included in the payment (although it was purchased out of state). This is strange.
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05-09-2015, 06:48 PM	#7
OneRib Colonel 1107 Rep 2,448 Posts Drives: 2015 AY M3 Join Date: Mar 2013 Location: PA iTrader: (2)	The out of state part probably caused the issue. It sometimes happens when you buy way out of state. PA dealer wouldn't have this issue and most dealers bordering PA would be fine also (NJ,MD,OH,NY). If you buy from a dealer in say Kansas, the chance of a mistake increases. You may have to call the state revenue department and/or the dealer to straighten it out. __________________ 2013 E92 M3 LMB (gone but not forgotten) 2015 AY F80 M3 ED 7/9/15 Drop off 7/20/15 Redelivery 8/25/15 My AY M3 ED
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