Anyone live in Texas that has done a lease swap out of state?

[tlisotta]

Guys/Gals-

New to the forum and this is my first post. If this should be in the classifieds I can move it. I put it here because of the subject matter and wanted a broad audience. I am in search of a 2015 BMW M3 lease or I may buy it outright. As far as leasing goes - I have seen some older threads but wanted to understand from someone that has done a BME Lease Assumption out of Texas that lives in Texas.

Per the Texas Website it says:

When a vehicle is leased in another state and the lessee brings it to Texas for public highway use, the lessee (as the operator) owes motor vehicle use tax based on the price the lessor paid for the vehicle. The standard tax rate is 6.25 percent. Credit will be given for any tax the lessor or the lessee paid to another state.

Questions:

1) Is the Tax rate based on the original MSRP or the original price paid? - I realize that MSRP and price paid are probably close anyway. I am assuming they don't let you take into account depreciation?

2) It says you can get a credit back? I know some states just tax you on your payment (basically what you are leasing the car for - the depreciation). How do you get this credit back? Does BMW financial get involved or the original person that leases the car have to get a refund and pass it on?

Looks like Texas is rough on leasing bc of the full amount being taxed.....

Thanks in advance for any input

Tony

[Buschy]

you are probably going to pay the tax on the original sales price minus the taxes that the current lesee paid.
Just guessing.

[tlisotta]

Originally Posted by Buschy

you are probably going to pay the tax on the original sales price minus the taxes that the current lesee paid.
Just guessing.

Thanks for the reply. Calling the Tax office in the morning. I don't think they care about the taxes already paid as it is an out state car. I don't think I will like the answer .

[tlisotta]

Called the tax office. Net/Net - you have to pay the car's value at time of lease assumption as far as Tax goes. 6.25% times the value. Ouch. However, if lease is assumed in the state then you should not have to pay it again.

[yaymitch]

I did this and the answer you received is correct. However, if you decide to purchase the car you still have to pay taxes on the the purchase price at the end of the lease I believe. I would check on that last piece if you plan to buy the car.

[tlisotta]

Originally Posted by yaymitch

I did this and the answer you received is correct. However, if you decide to purchase the car you still have to pay taxes on the the purchase price at the end of the lease I believe. I would check on that last piece if you plan to buy the car.

You are correct. You have to pay again on the amount you buy the car for - residual. Crazy!

[yaymitch]

Originally Posted by tlisotta

You are correct. You have to pay again on the amount you buy the car for - residual. Crazy!

I know, ridiculous. That's why I did Owner's Choice instead of lease. If I decide to keep it I don't pay taxes on the buyout. For some reason it was also cheaper.

[Buschy]

Originally Posted by tlisotta

You are correct. You have to pay again on the amount you buy the car for - residual. Crazy!

so, why are you taking over a lease vs leasing/OC/Purchasing a new one?
if your goal is to own the car you are better off buying it from th ebegining and bmw has good rates.

[tlisotta]

Originally Posted by Buschy

so, why are you taking over a lease vs leasing/OC/Purchasing a new one?
if your goal is to own the car you are better off buying it from th ebegining and bmw has good rates.

Goal was not to own it if I lease it. Just making an observation that Texas taxes on both sides of the transaction. My goal is to do a short term lease but Texas makes it difficult to assume a lease bc of the taxes. However - looks like if I find a lease assumption in Texas instead of out of state - that would be favorable. I am also looking at the possibility of buying a 2015 outright.

[tlisotta]

Originally Posted by yaymitch

I know, ridiculous. That's why I did Owner's Choice instead of lease. If I decide to keep it I don't pay taxes on the buyout. For some reason it was also cheaper.

Thanks for the tip. I had heard about that. I may check into it.

[djpeetur]

You pay the tax on the vehicle value. I paid taxes on 68k. So if you buy it. You don't have to pay any more taxes. If you return. Ur screwed. texas sucks in assuming a lease

[Buschy]

Originally Posted by tlisotta

Goal was not to own it if I lease it. Just making an observation that Texas taxes on both sides of the transaction. My goal is to do a short term lease but Texas makes it difficult to assume a lease bc of the taxes. However - looks like if I find a lease assumption in Texas instead of out of state - that would be favorable. I am also looking at the possibility of buying a 2015 outright.

yes texas leases are not the best ever.

fyi, you cannot assume an owners choice, you would have to get a new vehicle.

[yaymitch]

Originally Posted by Buschy

fyi, you cannot assume an owners choice, you would have to get a new vehicle.

You are correct, BMW will not let you assume OC.

[tlisotta]

Thanks for all the replies. I do appreciate it.

[Bmaneevese]

Hey I just wanted to give you my input since I assumed a lease for an F82 that came from Florida, and I read varying reports on whether or not taxes had to be paid. In my case, when I went to register it at the DMV, all I ended up paying was my registration and license. I was ready to pay about 5k in taxes but I definitely did not have to do that. I'm not sure how my case differed from any of the above posters, but that was just my experience.

[The_Wood]

Originally Posted by Bmaneevese

Hey I just wanted to give you my input since I assumed a lease for an F82 that came from Florida, and I read varying reports on whether or not taxes had to be paid. In my case, when I went to register it at the DMV, all I ended up paying was my registration and license. I was ready to pay about 5k in taxes but I definitely did not have to do that. I'm not sure how my case differed from any of the above posters, but that was just my experience.

My experience was the same as yours on two lease assumptions into Texas - one from California, and the other from Arizona. I only paid registration fees on both at the Tax Office, and had to let BMW and the State of Texas know whether the car would be used personally, or for business. In the event of the former, the State of Texas will charge you property tax at the end of the year on the vehicle. As I registered both of mine for business use, the property tax application didn't apply (at least for the 2015 tax year).

OP, I shot you a pm yesterday. Happy to meet up and chat through the assumption process, or have you take a look at the f80

[tlisotta]

Originally Posted by Bmaneevese

Hey I just wanted to give you my input since I assumed a lease for an F82 that came from Florida, and I read varying reports on whether or not taxes had to be paid. In my case, when I went to register it at the DMV, all I ended up paying was my registration and license. I was ready to pay about 5k in taxes but I definitely did not have to do that. I'm not sure how my case differed from any of the above posters, but that was just my experience.

Thank you!

[tlisotta]

Originally Posted by The_Wood

My experience was the same as yours on two lease assumptions into Texas - one from California, and the other from Arizona. I only paid registration fees on both at the Tax Office, and had to let BMW and the State of Texas know whether the car would be used personally, or for business. In the event of the former, the State of Texas will charge you property tax at the end of the year on the vehicle. As I registered both of mine for business use, the property tax application didn't apply (at least for the 2015 tax year).

OP, I shot you a pm yesterday. Happy to meet up and chat through the assumption process, or have you take a look at the f80

Yep - just replied back to your PM. Thanks!

[chromatic]

Reviving an old thread here. OP, I recently moved to Texas- Collin County. I just assumed a lease from Washington state. How did it go with you? Did you have to pay tax on the vehicle. Please feel free to PM me. Thank you!

[dantm3]

Originally Posted by chromatic

Reviving an old thread here. OP, I recently moved to Texas- Collin County. I just assumed a lease from Washington state. How did it go with you? Did you have to pay tax on the vehicle. Please feel free to PM me. Thank you!

We took over the lease on a 528i from California and paid only 200 for registration and tags.. it's bizarre and I don't think my situation was any different then most. We were told that the car was taxed at current value over the phone, but then when I went it was a whole new story.. I didn't complain though... haha

[chromatic]

Originally Posted by dantm3

We took over the lease on a 528i from California and paid only 200 for registration and tags.. it's bizarre and I don't think my situation was any different then most. We were told that the car was taxed at current value over the phone, but then when I went it was a whole new story.. I didn't complain though... haha

Thank you for the post. I just registered my car today and paid $200 which includes new resident tax which is $90. I still couldn't understand that what is the whole deal with taxes in Texas, it is certainly confusing but like you stated.. I won't complain either. LOL

[dantm3]

Originally Posted by chromatic

Thank you for the post. I just registered my car today and paid $200 which includes new resident tax which is $90. I still couldn't understand that what is the whole deal with taxes in Texas, it is certainly confusing but like you stated.. I won't complain either. LOL

What tax office did you go to?