08-12-2016, 05:15 PM | #1 |
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Lease tax and sales tax rate different?!
Hi everyone,
I just wanted to see if you guys can confirm with me on this. I visited one of my local dealers for 16 M4 in Philadelphia, PA. Sales tax is 8% here in philly. Dealer quoted me for leasing and the tax rate he quoted me was 11% for leasing. I had asked him why it is marked up and he told me lease tax rate and sales tax rate are different. I have never heard of that. Can someone confirm this please? |
08-12-2016, 05:39 PM | #2 |
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Yup looks like there is the standard 6% sales tax plus 2% for living in Philly then another 3% on top of that for the lease....talk about a raw fucking deal!!
http://www.revenue.pa.gov/GeneralTax...x#.V65QRYTcZ95 |
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08-12-2016, 05:42 PM | #3 |
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There is the State Sales Tax, plus any additional tax your local municipality ask for, raising the total sales tax on the monthly lease payment.
From my personal experience in Miami, Florida, Sales Tax is 6%, but Miami-Dade County adds an additional 1% on the first $5,000 dollars, so I pay 7% tax on the monthly lease payment, because my monthly payment never exceeds the $5,000 cap. If I was buying the car, I pay the 6% up front, and the 1% municipality tax on the first $5,000, not more. You may have a similar situation. I never heard of a lease tax. These are Sales Taxes demanded by the State and Municipalities. Some states require the full sales taxes up front. Look at this link: Car Taxes by State |
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08-12-2016, 05:43 PM | #4 | |
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Wow! just read this. That's messed up. Note to self: never complain about Florida taxes. |
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08-12-2016, 05:46 PM | #5 |
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08-12-2016, 09:04 PM | #6 | |
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Wow, that is pretty insane. I thought 8% was high enough already and now they are adding another 3% on top of that? 11% tax? Ridiculous! |
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