[Dmitriy@AUTOcouture]

Guys,

Need your help.

I currently have a '07 328XI that is leased thru BMWFS and I got it from a dealer in New Jersey. This car's lease is going to be assumed by someone else.

Yesterday I went in to order a 335 E90 with 6MT ZPP ZSP NAVI CA 6FL HEATED SEATS AW/BLACK/ALUMINUM. The dealer (Hassel BMW on Long Island, NY) has 2 Status 112 allocation's available and I would have ordered the car yesterday if it wasn't for one small problem.

Here is my situation: My car is registered and insured in PA however I commute to NYC for work. The dealer is saying to me that since I WORK in NYC and live in PA, I have to pay 11.375% tax (8.375% state tax in NYC, 3% Lease Tax in PA) . At this point I'm fuming because I currently have a BMW that has the exact same lease and the only tax I paid was PA tax for 9% (6% sales tax + 3% lease tax). He is saying to me that the laws have changed since 5 months ago.

Moreover I work for a huge company, which has offices in PA, and I asked him if I can just put a PA office address on the credit app to avoid this NYC tax, if there is one. He specifically said NO because upon submition of a credit app BMWFS will call my job and verify my employment AND income. This cannot be true! I don't mind them calling at all but I leased my current BMW just 5 months ago and they never did this!

I want to finalize this deal today but on paper he is going to have a 11.375% tax rate which I don't want to pay. Its only a difference of about $400 but its the actual principle that counts. He also said that if when he builds the deal with his finance manager in the computer and the computer tells him its 9%, than he will use that figure.

Have any of you ever heard of this? This sounds completley unrational to me. Why should I pay taxes for a car, in the state that I work in? I understand income taxes, but not on a lease...


Any help would be greatly appreciated. Thanks!


-Dmitriy

[John 070]

I don't lease so I'll apply what I know about purchasing--if you were in the same situation with a purchase, you would pay PA sales tax since you are registering the car in PA. If it is in fact different with a lease, then why not lease in PA? imho where you work has nothing to do with anything, it's where you register the vehicle.

3% lease tax? Man, that's almost $1500 for nothing, over and beyond straight sales tax?

p.s.--if you commute with the car from PA to NYC, I can't imagine your insurance if you've told your agent about this daily commute.

[Dmitriy@AUTOcouture]

Originally Posted by John 070

I don't lease so I'll apply what I know about purchasing--if you were in the same situation with a purchase, you would pay PA sales tax since you are registering the car in PA. If it is in fact different with a lease, then why not lease in PA? imho where you work has nothing to do with anything, it's where you register the vehicle.

p.s.--if you commute with the car from PA to NYC, I can't imagine your insurance if you've told your agent about this daily commute.

Thanks for your response.

That's what I'm saying! I am using this dealer because he's giving me the best price and is all around a honest guy (hard to believe with all of these stealership's around).

I don't use the e90 to commute to NYC, got something else for that.

[Drew Mazurek]

What does work have to do with anything? I'm self employed and have been for 16 years and my "credit app" to BMWFS was a joke and they made no attempt to verify any income. Basically boiled down to credit report and score.

[theYardie]

Originally Posted by Drew Mazurek

What does work have to do with anything? I'm self employed and have been for 16 years and my "credit app" to BMWFS was a joke and they made no attempt to verify any income. Basically boiled down to credit report and score.

Yeah, I don't see how work has anything to do with your taxes. And although I haven't leased from BWW before, I did finance my first car through them initially until I changed finance companies. They never called my work to verify employment. In fact, the only times this has ever happened was when I bought real estate.

If they really want proof of employment they should also ask for a couple of your most recent pay stubs, like they do when you buy a house. What's stopping people from making up fictitious companies, like Vandalay Industries, and having their spouse/friend answer the phone to verify employment?

Do you know anyone in any of the PA offices? If so, ask them for permission to use their office number and get them to vouch for you. Honestly, I would just give them the address of one of the PA offices along with my bosses phone number. If you have a good relationship with your boss you could explain the situation to him. But I wouldn't worry about it much if I were you. Besides, the salesperson is probably jus misinformed (yeah, it's never happened before).

EDIT: I'm not an expert in this area and tax/leasing laws in your state may be different from mine. I'm just sharing from personal experience and what your salesperson said just doesn't compute.

[BMWDAD]

sales tax is where you register the car period.

[Dmitriy@AUTOcouture]

guys, thanks so much for your responses. I am going to put a PA office address on the app to save myself the aggrivation. I KNOW that he is wrong.

To the guy that said "You pay sales tax, where you register your car, period." Kudos to you brother!


Thanks again!

-Dmitriy

[BimmerJared]

You definitely pay sales tax only where you register, not where you work. I am leasing my 3, I live in PA and work for a BMW Dealer in NJ... I pay 9%.. if you need help on resolving this matter, PM me.

[rallycobra]

With a 2 yr lease on a 335, is it cheaper to register the car in NJ or PA?

[John 070]

Originally Posted by rallycobra

With a 2 yr lease on a 335, is it cheaper to register the car in NJ or PA?

Rhetorical question: Do we register a vehicle anywhere we want based on cost, or is it where we live and where it's garaged and insured?

[MoreCowbell]

Originally Posted by Drew Mazurek

What does work have to do with anything? I'm self employed and have been for 16 years and my "credit app" to BMWFS was a joke and they made no attempt to verify any income. Basically boiled down to credit report and score.

+1

[Briar]

Originally Posted by BMWDAD

sales tax is where you register the car period.

+1

[Carnage]

Originally Posted by shpuntik

Guys,

Need your help.

I currently have a '07 328XI that is leased thru BMWFS and I got it from a dealer in New Jersey. This car's lease is going to be assumed by someone else.

Yesterday I went in to order a 335 E90 with 6MT ZPP ZSP NAVI CA 6FL HEATED SEATS AW/BLACK/ALUMINUM. The dealer (Hassel BMW on Long Island, NY) has 2 Status 112 allocation's available and I would have ordered the car yesterday if it wasn't for one small problem.

Here is my situation: My car is registered and insured in PA however I commute to NYC for work. The dealer is saying to me that since I WORK in NYC and live in PA, I have to pay 11.375% tax (8.375% state tax in NYC, 3% Lease Tax in PA) . At this point I'm fuming because I currently have a BMW that has the exact same lease and the only tax I paid was PA tax for 9% (6% sales tax + 3% lease tax). He is saying to me that the laws have changed since 5 months ago.

Moreover I work for a huge company, which has offices in PA, and I asked him if I can just put a PA office address on the credit app to avoid this NYC tax, if there is one. He specifically said NO because upon submition of a credit app BMWFS will call my job and verify my employment AND income. This cannot be true! I don't mind them calling at all but I leased my current BMW just 5 months ago and they never did this!

I want to finalize this deal today but on paper he is going to have a 11.375% tax rate which I don't want to pay. Its only a difference of about $400 but its the actual principle that counts. He also said that if when he builds the deal with his finance manager in the computer and the computer tells him its 9%, than he will use that figure.

Have any of you ever heard of this? This sounds completley unrational to me. Why should I pay taxes for a car, in the state that I work in? I understand income taxes, but not on a lease...


Any help would be greatly appreciated. Thanks!


-Dmitriy

Paying the NY tax has nothing to do with where you work, it's because of where you're buying the car. You buy something in a state, you pay sales tax in that state unless it's tax laws state otherwise for particular scenarios (i.e. new car sales, etc.). If you drove to Maryland to buy a shirt, you're going to a pay a sales tax at the Maryland rate to buy that shirt, same principle. Your dealer just did a completely shitty job at explaining why the tax is the way it is. Most financial people at dealerships are completely useless when it comes to tax laws and you're better off researching how it works yourself so you know you're not getting screwed.

I had to deal with the same issue when I bought my Corvette, I bought it in a state which is not where I live. Because I chose (chose being the key word here no one forced me to buy out of state), I had to deal with 2 different sets of tax laws. Those laws vary from state to state which is why you are seeing a different scenario going from a NJ dealer to a NY dealer.

If you don't want to deal with it there's a simple fix, which is the ethical thing to do and the principle that really counts here , buy the car where you live. If you choose not to do that then be prepared to deal with it the right way.

[rallycobra]

Does NJ have a lease tax?

[s420merc]

Originally Posted by Carnage

Paying the NY tax has nothing to do with where you work, it's because of where you're buying the car. You buy something in a state, you pay sales tax in that state unless it's tax laws state otherwise for particular scenarios (i.e. new car sales, etc.). If you drove to Maryland to buy a shirt, you're going to a pay a sales tax at the Maryland rate to buy that shirt, same principle. Your dealer just did a completely shitty job at explaining why the tax is the way it is. Most financial people at dealerships are completely useless when it comes to tax laws and you're better off researching how it works yourself so you know you're not getting screwed.

I had to deal with the same issue when I bought my Corvette, I bought it in a state which is not where I live. Because I chose (chose being the key word here no one forced me to buy out of state), I had to deal with 2 different sets of tax laws. Those laws vary from state to state which is why you are seeing a different scenario going from a NJ dealer to a NY dealer.

If you don't want to deal with it there's a simple fix, which is the ethical thing to do and the principle that really counts here , buy the car where you live. If you choose not to do that then be prepared to deal with it the right way.

Thats horse shit you pay the tax for the state you register your car in.
I can buy my car in CA and Register it in PA it only matters what state plate u are running. MY last car was bought in NY but i paid the 9% PA state tax for lease ps its 6% if u buy the car. To the OP you are getting scamed.
If they charge u 8.75% NYS tax u will get ripped for that cause in order to register your car in PA u will have to pay the PA tax then too which is 9%.

Oh also to the OP if you do lease the car in NY make sure that the BANK FEE You get charged is for PA call up BMWFS and ask what their PA bank fee is it varies sometimes from state to state.
I am leasing a ML350 on monday for my dad and NYS bank fee is 875 but the PA one is only 650.

[Carnage]

Originally Posted by s420merc

Thats horse shit you pay the tax for the state you register your car in.
I can buy my car in CA and Register it in PA it only matters what state plate u are running. MY last car was bought in NY but i paid the 9% PA state tax for lease ps its 6% if u buy the car. To the OP you are getting scamed.
If they charge u 8.75% NYS tax u will get ripped for that cause in order to register your car in PA u will have to pay the PA tax then too which is 9%.

Oh also to the OP if you do lease the car in NY make sure that the BANK FEE You get charged is for PA call up BMWFS and ask what their PA bank fee is it varies sometimes from state to state.
I am leasing a ML350 on monday for my dad and NYS bank fee is 875 but the PA one is only 650.

read the post again...You buy something in a state, you pay sales tax in that state unless it's tax laws state otherwise for particular scenarios (i.e. new car sales, etc.)...Most financial people at dealerships are completely useless when it comes to tax laws and you're better off researching how it works yourself so you know you're not getting screwed.
The laws vary from state to state (most states have scenarios written into the law that speak to what happens if you buy it in the state but will register it in another) and just because it was a certain way when you bought a car doesn't mean the laws haven't changed since then. If you think that's horseshit then you better get a clue real fast.